Singapore stands as a parliamentary republic and a premier financial hub in Southeast Asia. With its highly developed free market economy and globally recognized business-friendly environment, the city-state has become a magnet for enterprises in regulated sectors—especially within finance, digital payments, and cryptocurrency.
As a leading onshore financial center, Singapore enjoys international credibility. It offers a competitive tax regime with zero percent tax on offshore profits and maintains reasonable regulatory fees. Backed by political stability and a forward-thinking regulatory framework, a license from the Monetary Authority of Singapore (MAS) carries significant global prestige. For businesses in the digital asset space, obtaining a Singapore cryptocurrency license is not just compliant—it’s strategic.
The MAS oversees the licensing of payment services under the Payment Services Act (PSA), with the Class F Payment Institution License being the most comprehensive category. This license enables firms to provide all seven regulated payment services, including digital payment token (DPT) services—commonly known as cryptocurrency trading and exchange operations.
Why Obtain a Cryptocurrency License in Singapore?
Singapore has positioned itself as a leader in fintech innovation while maintaining strong anti-money laundering (AML) and consumer protection standards. For crypto entrepreneurs and institutional players alike, the benefits of securing a Singapore crypto license are compelling:
- Global Credibility: A MAS-licensed operation signals trustworthiness to users, partners, and investors.
- Access to Asia-Pacific Markets: Strategically located, Singapore serves as a gateway to fast-growing markets in Southeast Asia and beyond.
- Favorable Tax Environment: Offshore income is taxed at 0%, making it ideal for international crypto businesses.
- Regulatory Clarity: Unlike jurisdictions with ambiguous or shifting rules, Singapore provides clear guidelines for compliance.
- Talent & Infrastructure: The country hosts a deep pool of financial and tech talent, supported by world-class banking and digital infrastructure.
With daily Bitcoin trading volumes exceeding $20 billion globally, entering the crypto market through a regulated pathway ensures long-term sustainability—and Singapore offers one of the most efficient routes.
Key Features of the Class F Payment Institution License
The Class F license is the highest tier under the PSA, granting full authorization to conduct digital payment token services. Here's what you need to know:
- License Type: Class F Payment Institution (Major Payment Institution)
- Processing Time: Typically 6 to 12 months, though preliminary approval can occur within 3–4 months with a complete application
- Minimum Capital Requirement: S$1 million in paid-up capital; higher operational thresholds apply based on transaction volume
- Tax Benefits: 0% tax on qualifying offshore income; onshore profits taxed at competitive corporate rates
- Economic Substance: Required—must demonstrate real business activity in Singapore
- Local Director & Resident Officer: At least one director must be a Singapore resident; a local compliance officer is mandatory
- AML/KYC Compliance: Robust policies required per MAS Notice 626
- Audit & Reporting: Annual audits by approved auditors; ongoing reporting obligations
This regulatory structure balances innovation with investor protection, ensuring that licensed entities operate transparently and securely.
👉 Learn how to meet MAS requirements and fast-track your licensing journey.
Steps to Obtain a Singapore Cryptocurrency License
Securing a crypto license in Singapore involves several structured phases:
1. Establish a Local Entity
Form a private limited company registered with the Accounting and Corporate Regulatory Authority (ACRA). This entity will serve as the applicant for the MAS license.
2. Develop a Comprehensive Business Plan
Your plan should outline your target market, business model, risk management strategies, cybersecurity measures, and projected financials for the next three years.
3. Prepare Financial Documentation
Submit current financial statements, personal financial disclosures for shareholders and key officers, and detailed financial projections.
4. Draft Regulatory Policies
Create formal AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism), KYC, data protection, and customer dispute resolution policies aligned with MAS guidelines.
5. Submit Application to MAS
File Form 1 under the PSA along with all supporting documents. The MAS reviews applications thoroughly, often requesting clarifications or additional materials.
6. Engage Local Compliance Experts
Work with licensed auditors, legal advisors, and compliance officers based in Singapore to ensure adherence to local standards.
7. Open Corporate Banking Accounts
Secure banking relationships with institutions willing to support crypto-related businesses—a critical step that often requires early engagement.
8. Ongoing Compliance & Monitoring
Once licensed, maintain strict compliance through regular audits, reporting, staff training, and system upgrades.
Frequently Asked Questions (FAQ)
Q: How long does it take to get a cryptocurrency license in Singapore?
A: The process typically takes between 6 to 12 months from submission to final approval. However, well-prepared applications with complete documentation may receive preliminary in-principle approval in as little as 3–4 months.
Q: Is there a minimum capital requirement for a crypto license?
A: Yes. Applicants must have at least S$1 million in paid-up capital. Operational thresholds increase if monthly transaction values exceed S$3 million for DPT services.
Q: Can foreign nationals own and operate a licensed crypto business in Singapore?
A: Yes, but at least one director must be a Singapore resident, and a local compliance officer must be appointed. Foreign owners can hold majority or full equity.
Q: Are offshore profits taxed in Singapore?
A: No. Offshore-sourced income is generally not subject to corporate tax in Singapore, provided it meets certain conditions under the country’s territorial tax system.
Q: What happens if my application is rejected by MAS?
A: You’ll receive feedback outlining deficiencies. Many applicants reapply after addressing concerns related to governance, risk controls, or business viability.
Q: Do I need physical office space in Singapore?
A: Yes. To satisfy economic substance requirements, your company must have a registered office address and conduct core operations locally.
Building a Sustainable Crypto Business in Singapore
Beyond licensing, success hinges on building robust systems for security, compliance, and user experience. The MAS expects licensed institutions to implement enterprise-grade cybersecurity protocols, real-time transaction monitoring, and transparent fee structures.
Moreover, partnering with established platforms can accelerate growth. For example, integrating with compliant liquidity providers or white-label exchange solutions allows new entrants to scale quickly while focusing on regulatory adherence.
👉 Explore how top-tier platforms support licensed operators with secure trading infrastructure.
Singapore continues to refine its regulatory approach, recently tightening rules around retail access to crypto products while encouraging institutional innovation. This balanced stance reinforces its role as a responsible leader in the global digital asset ecosystem.
By choosing Singapore as your licensing jurisdiction, you’re not only gaining regulatory approval—you’re aligning your business with one of the world’s most respected financial centers.
Whether you're launching a crypto exchange, wallet service, or brokerage platform, starting with a Singapore cryptocurrency license sets the foundation for credibility, scalability, and long-term success.
Core Keywords: Singapore cryptocurrency license, MAS crypto license, Class F Payment Institution, digital asset license, crypto exchange license, blockchain regulation Singapore, fintech licensing Singapore