Although cryptocurrency has been around since its introduction of Bitcoin in 2008, it wasn’t until recently that it started to pick up momentum. Now, it is gaining traction globally. 

In Singapore, cryptocurrency, as a business venture, was only legalised in April 2022. The law extends cryptocurrency regulations to local companies that provide services in the form of digital tokens outside the city-state. In doing so, the government opened new doors for digital asset providers to expand their reach and build new networks. So, if you’re interested in seizing these opportunities, here are some business ideas you can explore.

NFT Business

An NFT (Non-Fungible Tokens) business is one of the most popular cryptocurrency ideas you can try. It is a unique type of digital asset (in the form of cryptographic tokens) that represents real-world objects. Some examples of this include art, in-game items, music, and videos. These assets are sold and bought online and are generally encoded with an underlying software similar to many crypto businesses.

While NFTs have been present since 2014, their popularity skyrocketed in 2021 amidst the pandemic. In the same year, it garnered a market value worth $41 billion, which is only expected to grow in 2022 and beyond.

What makes this idea so profitable is because it latches on to the idea of collectability, selling one-of-a-kind pieces that are not available anywhere else. That said, if you’re interested in venturing into NFT, here are some applications you can further look into:

• Digital art
• Asset management

Crypto Payment Gateway

With the rise of cryptocurrency comes the rise of new digital payment schemes. Hence, the crypto payment gateway is becoming another popular business venture among entrepreneurs.

A crypto payment gateway aims to provide cryptocurrency payment services that allow businesses to transact using this digital money. This is becoming increasingly important as many people worldwide are starting to see the benefit and potential of dabbling in cryptocurrency. For instance, businesses can transact instantly worldwide with so much ease. As such, some applications for this type of business idea include:

• Providing multiple crypto payment options besides credit card
• Offering blockchain services
• Developing a lending platform

Defi Exchange Platforms

Defi, a term that stands for Decentralised Finance, refers to the utilisation of blockchain technology to design financial products and services. Because of this, it has the power to revolutionise the financial sector and allow users to develop financial products without a mandatory third-party provider. Some of the more common products and services include Defi wallets and Defi lending and borrowing platforms. Other examples include Defi insurance and synthetic asset issuance.

Crypto Wallets

Since the majority of the blockchain and crypto networks use cryptocurrencies as their mode of payment, they will need wallets to store and keep track of their crypto tokens. Because of this requirement, the crypto wallet business likely sees increased needs. 

Regulations in Setting Up a Crypto Business

But before you can proceed with your Singapore business incorporation, here are some of the rules and regulations you need to watch out.

Formation Requirements

To successfully register your crypto business, you first need to register your company under a structure recognised by Commercial law. Then, you need to obtain a special licence if you plan on creating a crypto business in the financial field. However, if you plan to set up a business under an IT company, obtaining special permits from the MAS (Monetary Authority of Singapore) is not mandatory.

Licence

If you’re dabbling in cryptocurrency exchange or participating in crypto trading activities, you will need to obtain a crypto exchange licence from MAS. According to the governing body, these are the criteria you must meet to obtain the necessary licence.

• The company is registered in Singapore/
• The company provides information about the crypto token to be traded.
• The company creates an offer to no more than 50 private investors each year.
• The company meets the maximum value offer of S$ 55 million per year.

Anti-Money Laundering Regulations

All crypto businesses must abide by the country’s Anti-Money Laundering Act, which aims to prevent any acts of money laundering, predicate offences, and terrorist financing that may impact the country’s financial integrity. Those who fail to meet these requirements will be subject to penalties.

Conclusion

To ensure that you meet the requirements and speed up the process of company registration in Singapore, it’s advisable to seek professional assistance from field experts — like Corporate Services Singapore. 

We have an experienced team who can advise you on the right business venture and help you register your company with ease. So, if you plan on undertaking Singapore company formation, feel free to contact our services.