Singapore cryptocurrency solution
Since the inception of Bitcoin in 2009, Healy Consultants Group PLC has been providing our international Clients with a simple, practical low-cost solution for crypto business. One attractive option is to set up a Singapore limited liability company and opening an international crypto-friendly corporate bank account.
What is a Singapore cryptocurrency solution?
- Healy Consultants Group PLC recommends our Clients to incorporate a Singapore offshore company and open an international crypto-friendly corporate bank account;
- This solution is suitable for international Clients who are looking to conduct crypto-related business outside Singapore.
Company incorporation steps
Our international Clients are not required to travel to Singapore to incorporate the company. Healy Consultants Group PLC will project manage the whole registration procedure on our Client’s behalf. Please refer to this webpage for further details on the steps to setting up a company in Singapore.
Advantages of doing business with a Singapore cryptocurrency solution
- Singapore is Asia’s leading financial technology (FinTech) hub and the world’s leading digital adopter. The country’s robust technology infrastructure supports the establishment and growth of cryptocurrency and other digital finance innovations;
- Singapore’s digital payments industry is well regulated. In January 2020, new licensing requirements were introduced for Singapore payment services firms, including cryptocurrency businesses. The new licensing regime enhances consumer protection, strengthens cyber security and instils confidence in the use of cryptocurrencies and other e-payments. It also aligns Singapore more closely to Financial Action Task Force (FATF) recommendations. We expect this will fast-track blockchain-based businesses and investments in future;
- The Monetary Authority of Singapore offers grants to support FinTech and financial innovation in the country;
- Singapore is home to several cryptocurrency trading platforms, including Coinbase, CoinHako, Coinmama and Indacoin;
- Singapore is one of few countries to have a Cryptocurrency and Blockchain Industry Association, which promotes and protects the use of digital currencies;
- A Singapore cryptocurrency business is an ideal vehicle from which to tap into the global cryptocurrencies market, which in 2019 had a cumulative capitalisation of US$237.1 billion;
- It takes less than one week to register a Singapore cryptocurrency company, and you are not required to travel to Singapore to complete formalities.
Problems of doing business with a Singapore cryptocurrency solution
- It is mandatory for all Singapore companies to appoint a Singapore resident director. Healy Consultants Group PLC can provide the same. See this webpage for more information;
- It is difficult for a Singapore cryptocurrency startup to open a corporate bank account in Singapore. Local banks are wary of cryptocurrency transactions and volatility. Healy Consultants recommends our Clients open a crypto-friendly corporate account with a reputable crypto-friendly international bank in jurisdictions such as Liechtenstein, Cyprus, Gibraltar and Switzerland;
- Although the Singapore FinTech industry is rapidly evolving, there are fears that a talent shortage could stifle sector growth.
Accounting and tax considerations
- If properly structured, a Singapore cryptocurrency company conducting international business is legally exempt from i) Singapore corporate income tax and ii) withholding tax and GST;
- Businesses that trade virtual currencies in the ordinary course of their business will be taxed on the profit derived from trading in the virtual currency;
- Profits earned by businesses through mining or trading of virtual currencies in exchange for monies are also subject to tax;
- If your business earns capital gain through long-term investment in virtual currencies, profits are not subject to capital gains tax;
- See this webpage for more information on other accounting and tax considerations in Singapore.
Regulatory license considerations
- On 28 January 2020, a new licensing regime came into force requiring payment service providers, including cryptocurrency traders, operating in Singapore to obtain licences. The Payment Services Act aims to streamline payment services, expand the scope of regulated payment services, and address i) money laundering and terrorism financing concerns ii) loss of funds owed to consumers or merchants due to insolvency iii) fragmentation and limitations to interoperability and iv) technology and cyber risks;
- The PS Act provides a clearer distinction between digital assets as Capital Markets Products and assets classified as digital payment tokens;
- Companies incorporated or starting business after 28 January 2020 are now legally required to secure a payment services license with the Monetary Authority of Singapore (MAS). Entities operating storage value facilities through Singapore-registered companies incorporated and commencing business before this date must also obtain a license, though exemptions exist and a transition period has been put in place. Healy Consultants Group PLC will assist our multi-national Clients’ secure regulatory license exemptions where applicable.
Our service packages
Healy Consultants Group PLC will project manage your securities brokerage business set up from start to finish. See PDF below for a quotation including our standard package of services:
Additionally, our Firm can also offer multiple additional support services, including i) accounting and bookkeeping services ii) merchant account opening services iii) drafting of prospectus if your Firm is planning to issue structured products and iv) assistance to recruit employees.