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

Cryptocurrency exchange in Singapore

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,...

Crypto license in Latvia

By establishing a firm and getting a crypto-license in Latvia, you open doors to offering services for crypto-exchange and storage of cryptoassets within provisions of law basis of the European Union and other countries. Our professional experts have already helped hundreds of clients successfully obtain permits to work with crypto-currencies in Latvia and others; it...

Crypto company in SVG

Exploring Cryptocurrency Ventures in SVG With constant innovation and incredible liveliness, the cryptocurrency industry has recently seen unparalleled expansion. Stronger regulatory supervision and control are now necessary as a result of this expansion. In this regard, the Caribbean island country of Saint Vincent and the Grenadines (SVG) has become well-known in the scene of worldwide...

Doing business for Ukrainians in the Czech Republic

Today a lot of Ukrainians would like to launch their own business, especially abroad. Among countries of the European Union, the Czech Republic is one of the best choices. This article will outline the main requirements for opening a business in the Czech Republic. There are several types of businesses there. The most typical are...

Company registration in Portugal

The Portuguese Republic is sited on territory of Iberian Peninsula. This state is in the tenth place in the rating of Europe regarding the procedure of “Companies Registration”. Portugal attracts a large number of entrepreneurs who are focused on doing commercial activities abroad. This happens for a number of the following reasons: low rates for...

MSB license in Dubai

In recent years, Dubai has emerged as a global hub for enterprise and finance, attracting entrepreneurs and investors from around the world. The city’s strategic location, modern infrastructure, and enterprise-friendly environment make it an ideal destination for various industries, including economic services. In this article, we will delve into the concept of Money Services Business...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7