Financial technology encompasses several branches among which research and development of innovative financial products and services, crowdfunding platforms and most recently blockchain and cryptocurrency.
Even if the use of digital money is allowed for trading purposes in Singapore, the Monetary Authority (MAS) has not provided for a legal framework which regulates this industry. The authority is currently working on one. However, it is not prohibited to open a cryptocurrency in Singapore. Our lawyers in Singapore can offer information on the requirements to register a cryptocurrency business in the city-state.
As mentioned above, cryptocurrency is popular in Singapore as most innovative startups use initial coin offerings (ICOs) to raise money for their activities. Moreover, this practice has led to the development of a whole blockchain and cryptocurrency market in Singapore. Recent numbers indicate that this year, Singapore companies have issued close to 100 ICOs which raised 1.25 billion USD. The first two summer months of 2017 alone brought 1.2 billion USD from ICOs to internet companies in Singapore.
Our law firm in Singapore can explain how to create a business and the regulations associated with trading cryptocurrencies.
Considering there are no special requirements related to the registration and operation of a cryptocurrency company, the formation process of such business will be carried out the exact same way as for any other type of company in the financial sector. Foreign investors will be required to appoint a local service agent or Singapore lawyers to handle the incorporation process.
At this point, the MAS does not impose any special license for the creation or use of cryptocurrency, however Singapore companies are required to comply with the anti-money laundering legislation when trading virtual currencies.
If you want to set up a cryptocurrency company in Singapore and need assistance, do not hesitate to contact us. You can also rely on our attorneys in Singapore for updates on the legislation related to cryptocurrencies.
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