General information about the Singapore cryptocurrency license
The crypto framework in Singapore is part of the Payment Services Providers licensing. The license allowing a company to offer cryptocurrency-related services is first and foremost a payment services license.

Getting licensed as a payment institution, a Singaporean legal entity can register for different activities, one of which is specifically directed towards crypto.

Payment institutions, including crypto related, are licensed and supervised by the Monetary Authority of Singapore (MAS), which is the central bank of the country. In 2019, the MAS issued the currently enforced Payment Services Act. This legal text specifies the rules to be and stay licensed, as well as what it permits or does not permit.

Thanks to a high level of proficiency in finance and IT, Singapore benefits from highly skilled workers and a dynamic, innovative environment. In the case of crypto, we can note such initiatives such as the Association of Crypto Currency Enterprises and Start-ups Singapore (ACCESS), who notably worked on interVASP messaging, a system aimed at facilitating the implementation of the Travel Rule between digital assets service providers.

With one of the strongest reputations in the world and a nationwide focus on transparency and trust, the Singapore crypto license is consequently subject to high requirements. Among other things we shall note a minimum authorized capital of about 100,000 SGD (about 73,000 USD) and one of the strongest AML-KYC legal frameworks.

Singapore currently does not recognize crypto as legal tender, but as an alternative means of payment.

Advantages of Singapore Crypto License
Registering for cryptocurrency activities under a Singapore Payment Services license presents virtual assets services providers with a massive advantage in terms of trustworthiness and reputation. Singapore is arguably the major financial place of the Asian continent, disputing this title with Hong Kong, and has proven for decades that it was a very fertile business environment.

A crypto license in Singapore also opens the doors to a wide range of business lines. As the cryptocurrency framework is integrated into a wider FinTech license, the Singaporean cryptocurrency exchange license can work in symbiosis with an authorization for banking activities, remittance, loans or multiple other financial services. This leads to high potential structures with the ever-existing possibility to extend their activities.

In summary, a Singapore crypto license is notoriously advantageous for ambitious projects willing not just to offer virtual asset services, but build an innovative and competitive FinTech company, who would work with crypto as part of its operations. Singapore would then allow for an efficient single framework and provide its licensee with a major reputational advantage.

Singapore VASP License: Process and Duration
The Payment Institution license with registration for crypto activities in Singapore is a high-level license, whose timeline can raise above 6 months for licensing only. The process is nonetheless straightforward, thanks to clear guidelines emitted by the regulatory body.

Obtaining a crypto license in Singapore begins with incorporating a company in the country. This company should have domestic substance in the form of an office space and personnel, with at least 1 executive director having to be either a Singapore citizen or resident.

A “suitably qualified compliance officer at the management level” shall be appointed to perform compliance duties pertaining to money laundering and terrorism financing. On the same level, the company should produce and enforce policies and procedures pertaining to AML-CFT, to data protection and cybersecurity, and to risk management and customer due diligence (“KYC/KYB”).

A crypto licensed company will be required to open a corporate account in a bank in Singapore.

The different types of crypto licenses in Singapore
The Payment Service Provider framework in Singapore is divided into two licenses, whose difference is based on the size of the operation and not on its nature.

The Payment Services Act of 2019 distinguishes a “Standard Payment Institution” (SPI) from a “Major Payment Institution” (MPI). The differences are mainly about numbers: requirements, thresholds for operation, etc.

In both cases, a Singapore Payment Institution willing to engage in cryptocurrency business must register for Activity F: “Digital Payment Token Service”.

This is one of 7 possible activities from the following list:

Activity A: account issuance service;
Activity B: Domestic money transfer service;
Activity C: Cross-border money transfer service;
Activity D: Merchant acquisition service;
Activity E: E-money issuance service (electronic money is NOT cryptocurrency!);
Activity F: Digital payment token service;
Activity G: Money-changing service.
Difference between a Standard Payment Institution and a Major Payment Institution in Singapore
We can list as examples of what qualifies a company as an MPI instead of an SPI:

The volume of all transactions of one registered activities exceeds 3M SGD, or the volume of all transactions of the company exceeds 6M SGD;
The issued “electronic money” (not crypto, but fiat equivalent on a platform does qualify as such) exceeds 5M SGD.
If a company shall requalify from SPI to MPI, it will be obliged to raise its share capital, its safety deposit, and to reinforce its team consequently.

Issuing security tokens as a licensed Singapore crypto company
As a payment institution, a Singapore licensed crypto exchange can also apply for a Securities and Futures License, giving it the possibility to issue security tokens and other types of crypto derivatives.

Getting this license is a separate process with its own requirements, laid out in the Securities and Futures (Licensing and Conduct of Business) Regulations of 2004, lastly amended in 2023.