How to Receive a Cryptocurrency Exchange License in Singapore

How to Receive a Cryptocurrency Exchange License in Singapore
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The foremost action necessary to get a Singapore cryptocurrency license by your crypto company is approaching the Accounting and Corporate Regulatory Authority of Singapore. Surely, you can expect to receive your Singapore crypto exchange license soon if the package of your documents was formed and executed well. The jurisdiction is considered reputable and reliable in terms of regulatory issues. It is even worthy to say more.

When mentioning countries that welcome small Fintech projects in the world, Singapore remains distinct in the Southeastern part of Asia. For instance, the country has a strong interest in building a unique financial sector that can meet these emerging demands of the 21st-century world of innovations. The Monetary Authority of Singapore (the MAS, Authority) applies all measures required to represent itself as a center of smart finoperations by adopting favorable legal provisions for Fintech and innovation. Its new rules in favor of cryptocurrency exchange are proof of this statement and have boosted the trust of Singapore residents. Thus, it remains wise to lodge documents and get a Singapore cryptocurrency license to trade cryptos.

TERMS REQUIRED TO GET A SINGAPORE CRYPTOCURRENCY LICENSE

Firstly, approach the Accounting and Corporate Regulatory Authority, like for other enterprises, to incorporate your cryptocurrency company. Once that is achieved, then you can get a crypto exchange license for Singapore crypto companies from the MAS. To achieve getting a Singapore cryptocurrency license, your corporate entity must fulfill the next compulsory criteria:

  • Establish a physical presence as a crypto exchange company in Singapore.
  • Form up a group of executives that can handle the body of work the company will be doing.
  • Prove with admissible evidence that the enterprise aiming to receive a Singapore crypto exchange license can manage the threats investing in the crypto business is accompanied by.
  • Not find it difficult to work in line with determined rules set forth in the applicable laws for fair and transparent crypto exchange trade between the parties involved.
  • Agree to shun every action that may be in violation of public order.
  • Provide data about its financial, technical, and human resources.
  • Maintain transaction reports on the platforms required.
  • Be compliant in keeping and protecting confidential info of the business and that of contributors.

OBLIGATIONS OF CRYPTO COMPANIES AFTER OBTAINING SINGAPORE CRYPTOCURRENCY LICENSE

The cryptocurrency regulation might not be that strict in Singapore. However, after becoming the holder of a Singapore crypto exchange license, there are liabilities licensed operators must fulfill. These are:

  • Take proper record of transactions
  • Regularly submit business-related reports to the Authority
  • Provide assistance when the Authority requires help
  • Ensured privacy.

OPPORTUNITIES ASSOCIATED WITH GETTING SINGAPORE CRYPTOCURRENCY LICENSE

  • In Singapore, cryptocurrency business owners enjoy an environment with the ease of doing crypto exchange business. This explains why many big business players in countries with developed economies might consider Singapore to be a viable opportunity for investment.
  • More companies are showing interest. You may not have to express a feeling of surprise when you discover that many groups of companies like Luno have expressed interest to get a Singapore cryptocurrency exchange license.
  • In Singapore, the market is aware of and appreciates cryptocurrency. Dealing in Singapore makes a vibrant market where the trust in cryptocurrency as a future viable legal tender is being built by the Authority accessible with ease.
  • There is an enviable collaboration between Singapore banks and licensed crypto companies. In fact, the body of cryptocurrency enterprises drafted a code of practice for the governing of the standard practice of exchange with support from the banking sector.
  • Cryptocurrency is well-regulated to avoid criminal activities to boost the public's trust. Besides, the intention of the Authority to possibly reduce risk does not stop crypto companies from enjoying a flexible framework.

CONCLUSION

Singapore is now one of the countries in the world to declare cryptocurrency exchange operations as legal and create a favorable environment for those. Besides, Singapore has taken a progressive step to building a convenient legal framework for the activities of crypto exchange companies to give them the confidence and great yields they need. Currently, Bitcoin is categorized as "goods" by the Authority. Therefore, getting a cryptocurrency license means becoming liable to Singapore's equivalent option of Value Added Tax (VAT) called Goods and Services Tax. Above all, Singapore is doing well in terms of ensuring a friendly and enabling environment for crypto exchanges. As a business owner or potential investor, getting a Singapore cryptocurrency exchange license is worthy to become on the top of your priority list by now.

(1) MAS requirement for staff stipulates the necessity of appointing relevant persons to appropriate positions and also the Board of Directors should be made of several committees in charge of finance-related activities and conflict resolution.

(2) This is to assure MAS that the work environment is safe and assets are secured.

(3) The only exception is when confidential information is requested by the Authority or for legal matters

(4) MAS regulation has been favorable to cryptocurrency startups and firms with an interest in blockchain technologies.

(5) This is significant to rate the level of trust in crypto exchange companies and how much they can access banking services.



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