How to get a crypto license in Singapore: step-by-step for 2026
Singapore's Payment Services Act requires crypto firms to hold a license for digital payment token services, with the Monetary Authority of Singapore (MAS) enforcing strict compliance by 2026.
Understanding the Regulatory Framework
Singapore regulates crypto activities under the Payment Services Act (PSA), which classifies digital payment tokens (DPTs) as a regulated payment service. The Monetary Authority of Singapore (MAS) is the sole regulator. Firms must obtain a Major Payment Institution (MPI) license if they exceed transaction thresholds (SGD 3 million per month for DPT services) or a Standard Payment Institution (SPI) license for lower volumes. By 2026, all DPT service providers must be licensed; transitional exemptions will have expired.
The PSA also covers cross-border money transfers, e-money issuance, and merchant acquisition, but DPT services are the primary focus for crypto exchanges, custodians, and OTC desks. MAS has issued guidelines on anti-money laundering (AML), countering the financing of terrorism (CFT), and technology risk management. Firms must comply with the MAS Notice PSN01 on AML/CFT and the Technology Risk Management (TRM) Notice.
Eligibility and Minimum Requirements
To apply for a crypto license in Singapore, your company must be incorporated in Singapore (e.g., as a private limited company), have a permanent office or registered address, and appoint at least one executive director who is a Singapore resident (citizen, permanent resident, or Employment Pass holder). The MAS requires a minimum base capital of SGD 250,000 for an MPI license and SGD 100,000 for an SPI license, though higher amounts may be required based on business scale.
Key personnel must be fit and proper, meaning they have no criminal record, are not bankrupt, and have relevant experience. The MAS also expects a strong compliance framework, including a compliance officer, AML/CFT policies, and an internal audit function. Outsourcing of core functions is restricted, and the board must include independent directors if the firm is part of a group.
Step-by-Step Application Process
Step 1: Pre-application preparation. Engage a local corporate secretarial firm and legal advisor familiar with MAS requirements. Prepare your business plan, risk assessment, AML/CFT policies, and technology infrastructure documentation. Step 2: Submit a licensing application via MAS's electronic platform (e.g., CORPPASS or the licensing portal). The application fee is SGD 1,000 for an SPI and SGD 5,000 for an MPI, non-refundable. MAS will review within 4 to 6 months, but complex cases may take longer.
Step 3: During review, MAS may request clarifications or additional documents, such as audited financial statements, shareholder structure, and source of funds. Step 4: If approved, you will receive an in-principle approval (IPA) with conditions to fulfill before the license is granted, such as completing a regulatory sandbox or meeting specific capital requirements. Step 5: Post-licensing, you must comply with ongoing reporting, annual audits, and MAS inspections. The entire process from application to license issuance can take 6 to 12 months.
Compliance Obligations for License Holders
Once licensed, firms must adhere to MAS's AML/CFT requirements, including customer due diligence (CDD), transaction monitoring, and suspicious transaction reporting. For DPT services, MAS mandates that all transactions be recorded and retained for at least 5 years. Firms must also implement technology risk management measures, such as cybersecurity protocols, business continuity planning, and regular penetration testing.
Capital requirements must be maintained at all times: SGD 250,000 for MPI licensees (or higher if transaction volume exceeds SGD 6 million per month). Annual external audits are required, and MAS may conduct on-site inspections. Changes in key personnel, shareholders, or business activities require prior MAS approval. Failure to comply can result in fines, license suspension, or revocation.
Timeline and Costs for 2026
The typical timeline for obtaining a crypto license in Singapore is 6 to 12 months from application to issuance, assuming no major issues. Pre-application preparation (legal, compliance, and documentation) can take 2 to 3 months. The total cost, including legal fees, corporate secretarial services, and application fees, ranges from SGD 50,000 to SGD 150,000 for an MPI license, depending on complexity. SPI licenses are generally less expensive.
By 2026, MAS is expected to have fully phased out transitional exemptions, so firms currently operating under exemptions must apply well in advance. The MAS has also signaled tighter scrutiny on foreign-owned entities and those with complex ownership structures. Budget for ongoing compliance costs, such as annual audits, compliance officer salary, and technology upgrades, which can add SGD 30,000 to SGD 100,000 per year.
Common Pitfalls and How to Avoid Them
One common pitfall is incomplete or inaccurate documentation. MAS is known for rigorous reviews, and missing details can delay the process or lead to rejection. Ensure your business model is clearly described, and all AML/CFT policies are tailored to your specific activities. Another issue is undercapitalization; the minimum capital may not be sufficient if your projected transaction volume is high. Plan for capital buffers.
A third pitfall is non-compliance with technology risk requirements. Many applicants underestimate the need for strong cybersecurity and data protection measures. Engage a technology consultant to review your systems before submission. Finally, avoid using unlicensed intermediaries or promoters who claim to expedite the process. Only work with licensed corporate service providers and law firms in Singapore.
How to Choose the Right Jurisdiction
Work the decision in this order — customers first, everything else second:
- Who are your customers? EU retail means you need a MiCA passport (Lithuania, Malta or another EU CASP). US customers mean state-by-state money-transmitter licensing or a FinCEN MSB — consider a Canada MSB or a US setup. Latin America, Asia or HNW clients mean an offshore or territorial base such as Panama is usually the better fit.
- Do you need a regulator badge? A public-facing exchange chasing institutional partners and fundraising often needs the reputational lift of an EU, Swiss or VARA licence. An OTC desk or token treasury usually does not.
- What is your budget and timeline? Offshore and territorial routes set up in weeks for tens of thousands; premium onshore licences take many months and six figures.
- What about tax? Territorial-tax jurisdictions like Panama charge 0% on foreign-source income; EU jurisdictions apply standard corporate tax. Factor total cost of ownership, not just setup fees.
For many offshore-first founders, Panama lands at the intersection of fast incorporation, low cost and 0% tax on foreign-source income, which is why it features so heavily in our work. But the honest answer is that the “best” jurisdiction is the one that matches the four answers above — and that is a conversation worth having before you spend a cent. See our cost breakdown and application process to ground the decision in real numbers.
Banking and Compliance: Where Most Setups Actually Stall
Incorporation is the easy part of any crypto project. Banking is where timelines slip and where under-prepared founders lose months. Since 2023, banks and payment processors worldwide have tightened their onboarding of crypto-adjacent businesses, and they now expect a genuinely professional application — not a one-page business summary. A thin file is simply rejected, and re-applying with the same bank is far harder than getting it right the first time.
Three documents do the heavy lifting. The first is a written AML/KYC compliance program: your customer-onboarding flow, transaction-monitoring rules, sanctions and PEP screening, a named compliance officer, and record-keeping policies. The second is a clear, evidenced source-of-funds file for both the company and its beneficial owners. The third is a coherent business description that explains who your customers are, how money moves, and what volumes you project. Banks approve businesses they understand; ambiguity reads as risk.
Sequencing matters as much as substance. The correct order is: incorporate the operating entity, build the compliance program, assemble the source-of-funds package, and only then approach banking — ideally through a warm introduction rather than a cold application. Founders who approach banks mid-setup, before their file is complete, create the very delays they are trying to avoid. We make direct introductions to banks and crypto-friendly payment rails as part of every engagement, but the introduction only works if the file behind it is ready.
None of this is optional, and none of it changes much from one jurisdiction to the next — the compliance bar is now broadly global. What changes is the appetite of local banks and the speed of onboarding. Our requirements checklist sets out exactly what you need to assemble before you approach a bank.
Crypto Licensing in 2026: The Bigger Picture
Choosing where to license a crypto business in 2026 is no longer a simple cost calculation. The regulatory map has hardened considerably over the last three years. In the European Union, the Markets in Crypto-Assets Regulation (MiCA) has replaced the patchwork of national VASP registers with a single Crypto-Asset Service Provider (CASP) authorisation that passports across all 27 member states. That passport is powerful — but it comes with capital requirements, governance obligations and a multi-month authorisation process that smaller projects often underestimate.
Outside the EU, the picture is more varied. Offshore and territorial-tax jurisdictions compete on speed, cost and privacy, while major financial centres such as Switzerland, the UAE and Singapore compete on credibility and institutional access. The Financial Action Task Force (FATF) sits over all of them: its “travel rule” and AML standards now apply, in some form, almost everywhere a serious crypto business would consider basing itself. Jurisdictions that ignore FATF expectations end up grey-listed, which quietly closes correspondent-banking doors for every company registered there.
This is why the question behind How to get a is rarely “which licence is cheapest?” It is “which regime matches my customers, my risk appetite and my banking needs?” An EU-retail exchange and an offshore OTC desk serving high-net-worth clients in Latin America have almost nothing in common in terms of the right base. Getting this decision right at the start saves you from the single most expensive mistake in the industry: licensing in the wrong place and having to re-domicile a live business.
Consulting24 has guided more than 200 crypto company setups across 15+ jurisdictions since 2017, which means we have seen how each of these regimes behaves in practice rather than just on paper. The summary below is the same framework we use with clients — and we are always happy to map it to your specific model. Start with our Panama vs Lithuania comparison to see how the trade-offs play out between an offshore base and an EU-passported one.
Common Mistakes to Avoid
The failures we see when founders research How to get a on their own are remarkably consistent, and almost all of them are avoidable. The first is licensing to the headline tax rate. A 0% jurisdiction is worthless if your customers legally require a regulated provider you cannot become there — you will simply have to start again. Decide who you are allowed to serve first, then optimise for tax.
The second is treating the compliance program as paperwork. The AML/KYC program is not a formality to satisfy a regulator; it is the document your bank reads most closely. A generic template downloaded from the internet is transparent to any compliance officer and will sink your banking application. It needs to reflect your actual product, customer base and risk profile.
The third is underestimating banking lead time. Founders routinely budget for incorporation and forget that the bank account — the thing that actually lets the business operate — can take longer than the licence itself. Build banking into your launch timeline from day one, not as an afterthought.
The fourth is ignoring personal tax residency. A company in a low-tax jurisdiction does not erase your obligations where you personally live. Many founders create unexpected liabilities by structuring the company perfectly and ignoring themselves. We introduce qualified tax advisors precisely to close this gap.
The fifth and most expensive is choosing a provider on price alone. The cheapest setup that results in a rejected bank application or a re-domiciliation is far more expensive than doing it properly once. Ask any provider to itemise their fee and explain their banking track record before you commit.
What Happens After You Are Licensed
Getting licensed and banked is the start, not the finish. Every regulated or registered crypto business carries ongoing obligations, and letting them lapse is how companies lose their standing — and their banking. At minimum you will maintain a registered agent or local presence, file annual renewals or supervision fees, keep accounting records, and keep your compliance program live with periodic reviews and updated sanctions and PEP screening lists.
Most jurisdictions also expect you to keep your beneficial-ownership information current and to report material changes — new directors, new shareholders, a pivot in business activity — promptly. Transaction monitoring is not a one-time setup either; screening rules need tuning as your volumes and customer mix evolve. Banks may request periodic refreshes of your KYC and source-of-funds documentation, particularly after a year of trading or a significant change in activity.
This is why we offer ongoing maintenance on an annual retainer rather than treating setup as a one-off transaction. The cost of staying compliant is a fraction of the cost of losing a banking relationship and having to rebuild one from scratch. Plan for it in your year-two budget from the outset, and treat your compliance function as a living part of the business rather than a box you ticked at launch.
It is also worth planning ahead for growth. A structure that suits a pre-revenue startup may not suit the same company once it is processing meaningful volume, adding new product lines, or expanding into new markets. Many of the businesses we work with begin in a fast, low-cost offshore base to validate the model, then add a second regulated entity — an EU CASP, for example — once revenue justifies the cost and the market access genuinely matters. Designing the first structure with that possible second step in mind keeps your options open and avoids a disruptive re-domiciliation later. We map this growth path out with clients during the initial planning stage so the early decisions support, rather than constrain, where the business is heading.
Consulting24 has completed 200+ crypto company setups across 15+ jurisdictions. Talk to our team for a fixed-fee proposal and realistic timeline.
Learn more WhatsApp usEmail mardo@consulting24.co · Phone +372 58155779
About Consulting24 & Mardo Soo
Founder & CEO, Consulting24 · LinkedIn
Consulting24 is an eight-year-old advisory firm that has completed 200+ crypto company setups across 15+ jurisdictions since 2017. Founder and CEO Mardo Soo and the team specialise in crypto, VASP and exchange licensing — from Panama and the EU (MiCA) to Dubai, Canada and the offshore world. We don't push a single “best” jurisdiction; we map your business to the regime that actually fits, then handle incorporation, the AML/KYC compliance program, and banking and payment-processor introductions end to end.
Every engagement begins with an honest conversation about your customers, budget and timeline and ends with a fixed-fee proposal, so you know the all-in number before you commit. We also introduce vetted local lawyers and tax advisors wherever your structure requires them.
Operated by X24Consulting OÜ (Estonian Business Register code 16971898), Põrdi tn 3-63, 10156 Tallinn, Estonia · mardo@consulting24.co · +372 58155779
Frequently Asked Questions
What is the difference between an MPI and an SPI license in Singapore?
An MPI license is for firms exceeding transaction thresholds (e.g., SGD 3 million per month for DPT services) and requires SGD 250,000 base capital. An SPI license is for smaller volumes, with SGD 100,000 base capital, but restricts transaction limits.
Do I need to incorporate a company in Singapore to apply for a crypto license?
Yes, your company must be incorporated in Singapore as a private limited company under the Companies Act. Foreign companies can set up a subsidiary or branch.
How long does the MAS take to process a crypto license application?
MAS typically takes 4 to 6 months for initial review, but full approval can take 6 to 12 months depending on complexity and completeness of the application.
What are the capital requirements for a crypto license in Singapore?
For an SPI license, minimum base capital is SGD 100,000. For an MPI license, it is SGD 250,000, but may be higher if transaction volume exceeds SGD 6 million per month.
Can a foreigner be a director of a licensed crypto firm in Singapore?
Yes, but at least one executive director must be a Singapore resident (citizen, PR, or Employment Pass holder). Other directors can be foreigners.
What are the ongoing compliance costs after obtaining a license?
Ongoing costs include annual audits (SGD 10,000 to SGD 30,000), compliance officer salary, AML/CFT software, and technology upgrades, totaling SGD 30,000 to SGD 100,000 per year.
Is it possible to operate without a license while waiting for MAS approval?
No. You must not provide DPT services without a license or valid exemption. MAS may allow a sandbox environment for testing, but commercial operations require licensing.
What happens if my application is rejected by MAS?
You can reapply after addressing the reasons for rejection. MAS may provide feedback. There is no formal appeal process, but you can submit a new application.
Related reading
More crypto-license guides on this blog
- Crypto License in Panama: Cost, Requirements & Setup (2026)
- Crypto Exchange License: How and Where to Get One in 2026
- Crypto License Cost by Jurisdiction: 2026 Comparison
Crypto licenses by jurisdiction and topic
Compare every route we cover, each with cost, capital, timeline and requirements on consulting24.co:
This article reflects 2026 market conditions and is general guidance, not legal or tax advice. Regulations change — confirm specifics with qualified counsel before acting. Consulting24 (X24Consulting OÜ, Estonian reg. 16971898) introduces vetted local lawyers and tax advisors during every engagement.
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