Eternity Law International — News — Cryptocurrency exchange in Singapore

Cryptocurrency exchange in Singapore

Published:
January 28, 2020

In recent years, Singapore has been one of the countries with the largest financial investments in the cryptocurrency market. This is due to the fact that the Singaporean legal framework is one of the most loyal in relation to business related to virtual currencies.

The legal position of the authorities

Over the past few years, the development of cryptocurrency exchanges in Singapore has intensified. In this regard, the Singapore Monetary and Financial Administration (MAS) had to express its position on this issue more than once, as well as to provide explanations regarding some legal norms.

It was very pleased with the position of MAS about those companies that exclusively deal with the exchange of virtual currencies. Since in this case, their activities in Singapore are carried out freely, without state licensing.

But companies that have carried out ICOs related to transactions with securities, most often digital markers, will have to issue the corresponding Singapore license. Since the sphere of securities turnover is clearly regulated in Singapore by a special regulation.

It means that as long as the activities of an intermediary company in Singapore do not concern the securities market, but only exchange virtual currencies, no permits in the form of licenses will be required. This position of financial management attracts cryptocurrency entrepreneurs from various countries.

Token as a security

Token is not always equated with securities, and therefore the rules of the securities exchange do not always apply to its sale. However, in order for the activities of the company carrying out lawful the placement of tokens on the platform , it is important to know in what cases digital tokens act as securities.

– Token is distributed to attract loans. In this case, digital tokens are proof of the debt of the company that placed the tokens to their holders. A token is equivalent to a loan.

– Digital markers are placed on the platform to attract investors. Holders of tokens receive the right to participate in the management of the company, as well as receive profit from its activities. In this case, the token is identified with a security such as a share.

These cases are the most common, but this list can be expanded.

Basic requirements for licensing activities in Singapore

Issuing a license is a rather serious procedure. That is why a token trading company that wishes to license its activities in Singapore must meet a number of requirements:

  • a high level of security (you need to ensure the maximum security of the platform from unauthorized intrusions and the safety of funds on it);
  • comply with the exchange rules for transparent admission to trading;
  • strict accounting of all transactions carried out on the platform;
  • not to take actions that violate the rights of platform users, as well as create conditions for the preservation of confidential information;
  • record violations of the law and report it to the authorized bodies;
  • it is important to have an established system for managing risks.

Criteria for a trustworthy cryptocurrency exchanger

A virtual currency exchange company must have a specific staff. This state is headed by the general director, chairman, and board of directors.

In turn, the board of directors has a structured system consisting of various committees. Each of the committees is responsible for a specific area, for example, personnel appointments, remuneration, audits.

It is important to observe

Cryptocurrency exchanges Singapore must comply with regulations in the field of combating illegal money laundering, as well as financing terrorist organizations. In this regard, the token issuers are responsible for identifying platform users.

For detailed information, please contact our specialist.

You could be interested

Tax planning

The end to offshore companies. Tax planning In many states, because of the global crisis, it was decided to find additional resources in order to replenish the budget. For this reason, tax planning has become quite relevant and necessary for many companies. To this end, they are actively trying to tightly control the capital of...

Forex Broker License in Belize

Getting a Belize Forex brokerage license gives brokerage firms possibilities to be officially present on the market, operate as a regulated party and hold client funds. But all business-activities of each company are subject to stringent regulations, which will have to be supported by appropriate reports sent to a special authority. Belize is suitable as...

PSP license in Singapore

If you’re intending to deliver commercial offers directly connected with payments in Singaporean market, you are obliged by law to acquire a Singapore PSP-license. Below are the key points you need to consider before entering Singaporean financial market-space and getting a Singapore payment service providers license. What’s a PSP authorization? A Singaporean PSP-license is permission...

Initial placement of coins or ICO from the point of view of Swiss law

The initial placement of coins, or, as it is also called ICO in Switzerland, just like the launch of a token, is considered an unregulated method of attracting investment into a project. In fact, it is the issue of digital coins or tokens that are used to create a new cryptocurrency or are created based...

Corporate services in UK

With the onset of the covid restrictions, it seemed to many that most businesses and the world economy would be destroyed. Yes, this pandemic significantly affected many corporations. However, U.K. Corporate Services continue to grow by leaps and bounds. The United Kingdom is considered quite a promising and developed market. Unlike other countries, it has...

The leading of business in Czech Republic

In a time to come for most jurisdictions the term of filing the tax return for 2020 year is very close. If one of the parties of the business chain is a representative of the Czech jurisdiction, then it may be necessary to provide a document that would confirm the tax residence of the legal...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360