One of the best ways of setting up a business in the fintech sector in Singapore is by establishing a cryptocurrency company. In the last few years, the Singapore authorities have taken important steps in regulating various activities related to cryptocurrencies.
If you want to open a company in Singapore and need guidance on the cryptocurrency regulations you need to comply with, our local specialists are at your disposal with detailed information. We can also help you with the registration of such business.
The number of activities related to cryptocurrencies in Singapore has increased as the government in cooperation with the Monetary Authority in the city-state has started regulating them. Nowadays, the following crypto-related activities can be legally undertaken in Singapore:
When it comes to the regulations imposed on cryptocurrency activities, these depend on the type of action completed. Also, while some activities are subject to certain licensing requirements, others are not.
We can help you open a company in Singapore if you plan on investing in a cryptocurrency business.
As mentioned earlier, the regulations imposed on Singapore companies undertaking activities related to cryptocurrencies are quite strict and are imposed by the government and by the Monetary Authority which has the main role of supervising the transactions made through virtual money.
It should be noted that even if these transactions are not regarded as tenders, they are treated like goods from a financial point of view, therefore any transaction related to them will be subject to the Goods and Services Tax, the equivalent of the VAT in European countries.
The main cryptocurrency regulations applied in Singapore fall under the following laws:
Our company registration agents in Singapore can offer more information on the regulations related to cryptocurrencies in the city-state.
Foreign investors are just as welcome as local ones when it comes to setting up cryptocurrency companies in Singapore, as the government encourages this type of investments. In order to open such business in Singapore, an investor must first select the appropriate type of structure and then register it with the Accounting and Corporate Regulatory Authority in Singapore. Then, the specific license related to the type of activity to be undertaken must be obtained from the Monetary Authority in the city-state.
Those who want to create cryptocurrency businesses will be subject to similar licensing criteria imposed on financial companies in Singapore.
The most important and employed type of license usually obtain by cryptocurrency companies is the payment service provider license.
During the last few years, Singapore has taken huge steps in regulating various activities in the cryptocurrency field. Nowadays, Singapore is one of the most advanced countries from this point of view in Southeast Asia. Also, Singapore has enabled the Cryptocurrency and Blockchain Industry Association which guides companies in this field. Also, most Singapore cryptocurrency businesses are created as small companies with very low startup costs.
If you plan on setting up a cryptocurrency business and need guidance, please contact our Singapore company formation representatives for detailed information on the requirements related to such venture. We can also assist with the incorporation procedure of this type of company.