Singapore MAS Crypto Exchange License: Step-by-Step Process

Singapore is one of the leading hubs for crypto business, and it offers a clear set of licenses for working with digital assets.

Benefits of a crypto license in Singapore

A crypto license in Singapore gives companies working with digital assets several real advantages:

• Regulatory clarity. The country has detailed rules for crypto business, so a company understands its compliance obligations from the outset and operates with less uncertainty.
• Government support. The regulator backs fintech and blockchain with programs, incentives, and regular guidance and clarifications for the industry.
• Strategic location. Singapore is a gateway to both Eastern and Western markets, which simplifies international operations and access to diverse audiences.
• Stable economy. A dependable environment for business growth and long-term investment.
• English-language jurisdiction. English is the country's primary language, and all regulations are published in it, so requirements are easier to navigate.
• Advanced infrastructure. A modern technology base supports blockchain projects and other advanced solutions, from digital token services to broader fintech.
• Skilled workforce. A highly educated labor market gives access to strong talent in technology and finance.
• Favourable tax treatment. Competitive rates and rules help build a cost-effective model.
• Strong legal system. Singapore's law is respected for its transparency and enforcement. Oversight by the Monetary Authority of Singapore (MAS) keeps license holders within clear legal boundaries.
• Financial hub. As one of the world's financial centers, the country provides access to banking, investment, and insurance.
• Innovation ecosystem. Incubators, accelerators, and research institutions support startup growth.

The current digital-asset framework in Singapore

In 2019 Singapore passed the Payment Services Act (PSA). It is the main statute that digital-asset businesses work to today.

The PSA aligns with the FATF recommendations on international standards for combating money laundering, terrorism financing, and proliferation. It covers several activities:

• Digital payment token services (issuing, trading, transferring, holding, and related services).
• Money transfers within the country and across borders.
• Merchant acquisition.
• E-money issuance.
• Custody and exchange of digital payment tokens.

Stablecoins are worth watching separately. MAS finalised its stablecoin framework back in 2023: full 100% reserve backing, redemption at par, and white-paper disclosure. The enabling legislation, though, is still pending. Until it takes effect, which is expected around mid-2026, the "MAS-regulated stablecoin" label is announced policy rather than law in force.

Types of digital-asset licenses

To run a business with digital payment tokens, you need a crypto license from the Monetary Authority of Singapore. MAS regulates crypto companies and enforces strict standards of governance, risk management, and anti-money-laundering controls.

Getting a license is a demanding process: a company has to actually demonstrate compliance with these standards. The Payment Services Act sets out three classes of license for crypto exchanges:

• Money-Changing License. Permits money-changing services.
• Standard Payment Institution (SPI). For companies with smaller transaction volumes. It covers a range of payment services, including digital token operations, and is often the most balanced option for digital-asset work.
• Major Payment Institution (MPI). For companies with larger transaction volumes. It permits all payment services under the PSA, including digital token services.

The map no longer stops at these three classes. Since 2024 MAS has significantly widened the regulatory perimeter, and before you apply it is worth pinning down which regime your model falls under.

From 4 April 2024, amendments to the Payment Services Act brought DPT custody, the facilitation of token transfers between accounts, and the arrangement of token exchange into scope. A business that safeguards tokens or arranges transfers without ever holding customer money can now need a license where it previously did not.

From 4 October 2024, a set of customer-protection rules took effect, aimed above all at retail clients. Customer tokens must be held on statutory trust, segregated from company funds. For retail users, providers may not offer lending or staking of their tokens, accept locally issued credit-card payments, give trading incentives, or extend margin, leverage, or financing. The lending and staking ban does not apply to institutional and accredited investors.

From 30 June 2025, a separate DTSP regime for digital token service providers came into force under Part 9 of the Financial Services and Markets Act 2022. It sits alongside the Payment Services Act, not inside it, and catches a business the PSA did not: a Singapore-incorporated company, or a person operating from Singapore, that provides token services only to customers outside the country. MAS grants such licenses only in extremely limited circumstances, gave no transitional period, and required unlicensed offshore-only providers to cease that activity by 30 June 2025. The old assumption — incorporate in Singapore, serve a global customer base, obtain a PSA license — no longer holds for a purely offshore-facing operation.

How licensing works

Launching a digital-asset business in Singapore runs through several steps, each of them needed to stay compliant with local rules.

_{STEP 1 — Pre-application preparation}

The company gathers its documents: a business plan, compliance policies, and details of key personnel. It runs a risk assessment to confirm all requirements are workable, and prepares the security deposit: SGD 100,000 for a Standard Payment Institution and SGD 200,000 for a Major Payment Institution.

_{STEP 2 — Submitting the application}

The company files its application with MAS together with the required documents and fees. The application sets out detailed information on operations, risk management, and cybersecurity measures.

_{STEP 3 — Initial review}

MAS reviews the application for completeness and may request additional information or clarification.

_{STEP 4 — Assessment and due diligence}

MAS runs a thorough assessment, including due-diligence checks on the applicant and key personnel. Compliance with anti-money-laundering (AML) and counter-terrorism-financing (CTF) rules is evaluated separately.

_{STEP 5 — Decision}

MAS decides whether the application meets regulatory standards and issues the license. Keep in mind that incorporating a legal entity and securing a favourable MAS decision require a registered office in the country and at least one resident director.

Working through these steps keeps a company within Singapore's legal framework in a fast-moving market. Non-compliance risks fines, criminal charges, license revocation, and reputational damage.

Timeframe

Getting a crypto license in Singapore usually takes 4 to 6 months. The exact timing depends on the license type, the quality of the documents submitted, compliance with requirements, and the course of the review.

Notable crypto companies choose Singapore

Singapore is one of the most attractive countries for digital-asset companies, thanks to its convenient legal and tax regime.

Many well-known crypto companies, including major exchanges, are registered here. They chose Singapore for its transparent, innovation-friendly rules and its stable legal environment.

With strong regulation and a technology-friendly policy, the country has become one of the world's centers for licensed crypto companies. Its approach to taxation shows that the authorities are building a workable environment for this kind of business.

Taxation of crypto activity

Individual investors operate in a friendly environment: there is no capital gains tax and no income tax on crypto assets held.

The key point on indirect tax: since 1 January 2020, supplies of digital payment tokens are exempt from GST. Exchanging tokens for fiat or for other tokens, and using them to pay for goods and services, is not a taxable supply. Singapore's standard GST rate did rise over this period and has been 9% since 1 January 2024, but it does not apply to digital payment token supplies — that exemption sits apart from the general rate.

Direct taxes are a separate story. For anyone in professional trading or running a crypto company, profit is taxed as ordinary corporate income. If you trade crypto as a business or receive it in payment for goods and services, you pay income tax: rates run from 0 to 22%, and a company trading crypto for profit is taxed at the 17% corporate rate.

Individuals earning SGD 300 or more a year from staking and lending crypto pay income tax on it. As with other income, they self-report their crypto earnings. The Inland Revenue Authority of Singapore (IRAS) publishes guidance on crypto taxation and on calculating corporate income from trading.

Share capital for crypto activity

A crypto company in Singapore must have a minimum share capital of one dollar in the shareholder's preferred currency. For the Major Payment Institution license, which is often required for crypto activity, the minimum capital is SGD 250,000.

How our team can help

1. Consultation. We help you make sense of the legal and regulatory landscape of Singapore's digital-asset market and pick the right jurisdiction.
2. Business model analysis and structuring. We review the documents, contracts, and agreements tied to your projects and help with group structuring to keep them compliant and reduce the risk of disputes.
3. Document preparation and submission. We gather and prepare the full document package — from AML/KYC policies to product agreements required for the licenses and permits you need, including the Singapore crypto license.
4. Regulator interaction. We handle communication with MAS and run a regulatory compliance audit.
5. Post-licensing support. We stay on after the license is granted, helping you adapt to regulatory changes, stay compliant, and manage your tax obligations.

This material was updated in July 2026 by the Futura team.