Singapore’s regulatory framework for crypto assets is distinguished by its clarity, predictability, and dedication to market integrity, establishing it as an appealing jurisdiction for crypto projects and investors. The Monetary Authority of Singapore (MAS) provides comprehensive guidelines and regulatory oversight, fostering an environment conducive to innovation and investment in the crypto space. However, the taxation regime and operational costs associated with conducting business, especially when operating crypto exchanges in Singapore, require careful evaluation.

For businesses and investors navigating Singapore’s crypto asset sector, consider the following practical tips:

• English Law Principles: English law principles, augmented by local statutes and a comprehensive body of case law, provide clear legal guidance and predictability for businesses and investors within the crypto sector.
• Elevated tax rates: the relatively high taxes may affect the operational expenses of crypto enterprises and investors, making it a crucial factor for entities planning to establish or expand their operations in Singapore.

Our comprehensive report delves into Singapore’s regulatory framework for crypto assets, highlighting:

1. Business Analysis

The report delves deeper into Singapore’s crypto asset regulatory framework, providing a comprehensive guide for crypto businesses. It examines essential aspects, such as

• Crypto Asset Issuance: Comprehensive insights into the operational, licensing, and governance guidelines established by the MAS that cater to a transparent and structured digital asset market.
• Service Licensing: Clear guidelines on the operation, licensing, and governance of crypto-related businesses, covering a wide spectrum of crypto activities and fostering a transparent and orderly digital asset market.

2. Compliance Guidance

Emphasising the importance of thorough preparation and compliance, the report offers detailed insights into compliance requirements, such as

• AML Regulations: Insights into AML and compliance frameworks, highlighting the importance of adherence to both national and international standards in the prevention of financial crimes.
• Taxation: Overview of taxation and financial planning considerations for crypto businesses operating within the jurisdiction, reflecting the need for strategic operational structuring.

3. Launch Roadmaps

Actionable steps and up-to-date strategies for establishing and operating your crypto project in Singapore’s regulatory environment, ensuring a smooth and compliant launch.

4. Expert Insights

Perspectives from industry experts with a deep understanding of global regulatory environments, offering guidance to navigate the complexities of crypto regulations in Singapore.

Singapore’s regulatory environment for digital assets includes the following key aspects:

• Licences types: Payment Services Act 2019 (PSA) regulates digital payment token services provided in Singapore while the Financial Services and Markets Act 2022 (FSMA) creates a parallel licensing regime for digital token service providers, targeting Singapore-based businesses serving overseas clients.
• Licence Fees: Licence fees under PSA for crypto businesses range from $750 to $1,200 depending on the licence type, with annual renewal fees varying from $3,700 to $7,500. For digital token service providers under FSMA annual licence fee is $10,000.
• Capital Requirements: Minimum capital requirements under PSA vary from $75,000 to $190,000, depending on the type of licence. For digital token service providers under FSMA is $250,000.

Currently, there is no specific legal framework regulating crypto mining in Singapore.

DAOs currently fall outside the specific regulatory scope, although the existing framework covers a broad spectrum of crypto activities, promoting a transparent and orderly market.

The taxation framework for crypto activities, while exempting capital gains tax, includes corporate income tax and goods and services tax, impacting the operational expenses of crypto businesses.

1. Payment Services Act, 2019.
2. Guidelines on licensing for payment service providers, 2019.
3. The Financial Services and Markets Act 2022

The Financial Services and Markets Act 2022 (FSMA) introduces a new licensing regime for Digital Token Service Providers (DTSPs), coming into force on 30 June 2025.

A DTSP is defined as an individual, partnership, or Singapore-incorporated entity that carries on a business of providing digital token services from Singapore to persons outside Singapore.

Under the new rules, entities providing digital token services must either obtain a DTSP licence by 30 June 2025 or cease offering these services from Singapore. Non-compliance may result in a fine of up to $250,000.

Who Must Be Licensed?

Under Sections 137(1) and (3) of the FSMA, an individual, partnership or corporation must obtain a DTSP licence if they:

• Operate from a place of business in Singapore or formed in Singapore;
• Carry on a business of providing digital token services, and
• Provide such services to persons outside Singapore,

unless an exemption applies.

“Digital token services” refer to a range of regulated activities, including but not limited to:

• Dealing in digital tokens;
• Facilitating the exchange of digital tokens;
• Transmitting digital tokens on behalf of clients;
• Safekeeping of digital tokens.

Who Is Excluded?

Certain activities are explicitly excluded from the DTSP licensing regime:

• Technical Service Providers
• Digital Payment Token Services involving Limited Purpose Digital Payment Tokens
• Regulated Entities under other laws (Payment Services Act, Securities and Futures Act, Financial Advisers Act.

All detailed regulatory requirements and supervisory expectations are available in our full report.