Since the introduction of Bitcoin in 2008, cryptocurrency has never been the same, increasing in traction all around the world. While it has been around for a while, cryptocurrency was only made legal as a business venture in April 2022. This legalisation extends to local businesses that offer digital token services to surrounding nations, thus operating within proper cryptocurrency regulations.
With proper regulations, the Singapore government was able to open new opportunities for digital asset providers to build new networks and expand their reach. Hence, if you are a business interested in expanding its horizon, these are some business plans you might want to consider.
NFTs or Non-Fungible Tokens are unique digital assets that represent actual-world items. NFT businesses offer digital ownership of music, art, videos, and in-game items, among others. While NFTs have been around since 2014, they have gained recognition and interest during the pandemic and have since been valued at approximately $41 billion.
The profitability of the NFT business stems from the basis of unique collectability. Essentially, you own a one-of-a-kind piece of item. If such a business strategy is what you are interested in, then some applications of NFT business that you might want to consider are:
- Digital art
- Asset management
Defi Exchange Platforms
Defi, or Decentralised Finance, is the utilising of blockchain technology to design financial services and products. With such a platform, users in the financial sector have the capability to create financial products without the mandatory external provider. Some current services and products available are Defi borrowing and lending platforms, Defi wallets, Defi insurances as well as synthetic asset issuances.
Crypto Payment Gateway
The increase in the popularity of cryptocurrency opens new ventures for new digital payment methods. Hence, crypto payment gateways are popular business ventures for entrepreneurs. A crypto payment gateway is a form of payment service that aims to allow business transactions using digital currency. With such payment methods, businesses from opposite ends of the world can transact with one another instantly with ease. Hence, some applications for such business might involve:
- Offering multiple crypto payment options besides the use of credit cards
- Providing blockchain services
- Designing a lending platform
Most blockchains and crypto networks utilise cryptocurrencies as primary payment methods. Hence, the need to have a good and safe wallet to keep track of and hold on to their cryptocurrencies is essential. Thus, the crypto wallet business is a necessity.
Crypto Business Set-up Regulation
Before incorporating a crypto business in Singapore, there are some factors and regulations to look out for.
- Formation requirements: You first need to register the business under a Commercial law recognised structure. Then, a special licencing under the financial field from the Monetary Authority of Singapore (MAS) is needed to create a crypto business. If the company is to be set up as an IT firm, then it is not required to obtain the special licencing.
- Licence: A crypto exchange license from MAS is needed to participate in cryptocurrency exchange or trading activities. According to MAS, the business must meet the following criteria in order to obtain said licence:
- Business must be registered in Singapore
- Businesses must provide relevant information pertaining to the traded crypto token
- Businesses can only create offers to a maximum of 50 private investors annually
- Businesses must meet the maximum value offer of 55 million dollars annually
- Anti-money laundering regulations: All crypto businesses must keep to Singapore’s Anti-Money Laundering Act. This regulation aims to prevent any act of predicate offences, terrorist financing, and money laundering, thus protecting the nation’s financial integrity.
If you are an entrepreneur interested in setting up a crypto business in Singapore, now is a good time as the Government opens more opportunities to encourage financial growth. To ensure that you have stress-free company incorporation in Singapore, it is highly recommended to seek professional solutions from experienced industry experts such as AG Singapore which is also an accounting firm.
We have been providing corporate solutions such as corporate financing, company incorporation, digital marketing, and accounting services for small businesses for many years. To find out more, you can reach us at +65 9383 2464 or at email@example.com.