Cryptocurrency Exchange Development Company In Singapore

Bitdeal - the preeminent Cryptocurrency Exchange Development Company widen around Singapore, offers the best cryptocurrency exchange development services worldwide.
 
The cryptocurrency market is growing all over the world but especially in Singapore, it is reaching a greater height. Do you have any idea about it?
 
Yes, Singapore is one of the potential marketplaces in the world which gives space for cryptocurrency-related business services to their users with a stable financial system and having more than 400 fin-tech startups. Let us see the overview of the cryptocurrency market in Singapore

Why Singapore?

Singapore, officially the Republic of Singapore is an island city-state in Southeast Asia and also shares its border with Indonesia and Malaysia. 

Singapore is a highly developed country having a strong market economic growth, which is ranked 9th on the UN Human Development Index and the 3rd highest GDP per capita in the world.

Singapore is Persistently considered as the most business-friendly regulatory environment for local entrepreneurs. Singapore draws a large amount of foreign investment as a result of its zero corruption. Present years, the country is identified as an increasingly popular tax haven.

Hence, for companies that work with Bitcoin, Singapore is a good place to set up a business since it has governmental support. Additionally, Singapore was one of the first nations to start regulating the usage of digital currencies in 2014 by imposing taxes on it. 

Regarding blockchain innovation, authorities in Singapore are interested in applying this technology to their advantage.

In this blog let us discuss everything about cryptocurrency in Singapore.

1. Is Cryptocurrency Legal in Singapore
2. Cryptocurrency Regulations in Singapore
3. Cryptocurrency Taxations in Singapore
4. Singapore based Cryptocurrency Exchange
5. How to buy Bitcoin in Singapore?
6. Cryptocurrency Payment Acceptance in Singapore
7. Is cryptocurrency mining legal in Singapore
8. Bitdeal- Cryptocurrency Exchange Development Company

Is Cryptocurrency in Singapore legal:

Yes, Without beating around the bush, Cryptocurrency in Singapore is legal. As I mentioned earlier, Singapore is commonly referred to as one of the world's Crypto-haven. Therefore, the use and trading of bitcoin and various popular virtual currencies are legal.
 
Monetary Authority of Singapore (MAS) has said the following things that,
 
1. They are not legal tender
2. Can be encouraged as payment for goods and services
3. Can be recognized as personnel property or assets

Source: globallegalinsights.com

Cryptocurrency regulation in Singapore:

As it is not a legal tender in Singapore, the government cannot regulate the nature of crypto, but somehow it can monitor or govern the activities around the cryptocurrency to prevent the risk that harms investor or country’s economic growth by applying existing regulatory, legal frameworks where possible.

Here, every cryptocurrency exchanges should comply with Anti-money laundering and Counter-Terrorism financing rules and regulations(AML/CTF) issued by MAS. AML/CTF is like a Notices or guidance paper.
 
On account of these regulations, every exchange is required to do
 
1. The customer identity verification
2. Monitor and report any unsure transaction to Transaction reporting office
3. Monitor money laundering, terrorist funding, and financial crime activities

Source: AML/CTF Regulations

In 2014, the Inland Revenue Authority of Singapore issued a series of tax guidelines in which bitcoin transactions can be treated as a barter exchange. And in 2019, MAS referred bitcoin as a digital Payment token.

Is Cryptocurrency taxable in Singapore?

Revenue for Goods or Services:

A business that accepts cryptocurrency for goods or services is Taxable. The taxation will be based on Net profits. 

For example: If your business accepts ether payment then it will be taken as revenue just as if it is paid in fiat. Validation will be based on the date of the transaction.
 
Current Tax Rate: 17%

Capital Gain Tax:

Capital gain tax= amount you paid for your property - sold it for commission or fees
 
There is no capital gain in Singapore.
 
The business or individual who does long term investment by buying cryptocurrency will enjoy the capital gain. But, the business or individuals who buy/sell virtual currency in the ordinary course of business will subject to pay tax on derived profit, as it is considered as revenue.
 
The long term disposal of virtual currencies is subject to capital gain tax depends on the facts and circumference, purpose, transaction-based, holding periods.

GST on Sale of virtual currency:

IRAS has confirmed the Token sale as a sale of “supply of services”.

The Singaporean government’s taxation agency is exempting goods and services tax (GST) from cryptocurrency transactions.

The Inland Revenue Authority of Singapore (IRAS) published last Friday an e-Tax draft manage for treatment on what it calls the "Computerized Payment Tokens," looking to absolve any substance managing such advanced resources from GST liabilities.
 
(i)The utilization of digital payment tokens as payment for goods or services won't offer rise to a supply of those tokens.

(ii)The exchange of digital payment tokens for fiat money or other digital payment tokens will be excluded from GST.

Know More about the GST exemption.

How to buy bitcoin in Singapore

Obviously, the easiest way to buy bitcoin in Singapore is through a cryptocurrency exchange. However, the MAS does not intervene in any transaction or commercial decisions related to bitcoin. Customers can deposit SGD or any other fiat to a bitcoin exchange Account to buy a bitcoin.

Other Way to get Bitcoin is:
 
1. By charging bitcoin as goods and services
2. By Mining Process
3. By earning bitcoin through online games 
 
The Ways to buy Bitcoin

Singapore based cryptocurrency exchanges are:

Luno:

Luno is a universal bitcoin platform headquartered in London that provides a secured exchange platform to buy/sell Bitcoin. It is considered as the most trusted Bitcoin exchange in Asia with free deposits and low withdrawal fees.

Coinbase:

It is a secure digital currency exchange that makes it easy to buy, sell and store various cryptocurrencies like bitcoin,ethereum and more by connecting their bank account, credit card, debit card to their coin base account.

Local bitcoins:

It is an Escrow service that facilitates over-the-counter trading of local currency for bitcoins. Here the purchase of bitcoin is fast and easy which also requires no personnel information. The purchase of bitcoin can be made quickly via Case Deposit.

Coinmama:

Almost works in all countries, which allows all customers to buy several types of cryptocurrencies with a credit card or a SEPA Transfer and now has expanded to cover Litecoin, Cardano, Ethereum Classic, Bitcoin Cash and XRP.
 
Other Suggested exchanges are:
 
1. CoinHako
2. FYB-SG
3. Bitcoin ATMs
4. Mycelium Local Trader
5. Changelly

Refer more About Singapore crypto exchanges

cryptocurrency payment acceptance in Singapore

The Actual idea of bitcoin was to be an alternative form of payment. To bring this into reality, few merchants in Singapore started to accept cryptocurrencies as payment.

Skyline club - The First Club in Singapore to accept cryptocurrency as payment for Drinks and food.
 
Ducatus Café - A Cashless cafe that accepts payment in cryptocurrency and has a Cryptocurrency ATM.
 
Payment through Cryptocurrency offers the following benefits:
 
1. Transparency
2. Reduced third-party intervene
3. Low transaction fee
4. High security
5. Clarity

Is cryptocurrency mining legal in Singapore

There is no such regulation in Singapore for the mining of cryptocurrency. By the way, Cryptocurrency mining is the process of adding transaction information to the distributed ledger or blockchain. 
 
Here miners will compete with each other to be the first to verify the transaction and will earn the amount of cryptocurrency using Proof of work and most of the jurisdictions using the same process.
 
As mining is viewed as work, outsiders need to have a work permit in Singapore, and also the business who employ miners need to obey Singapore employment law.
 
Know Everything about Mining

Singapore Government Project:

The government has in-depth knowledge about cryptocurrency, as a result, MAS came up with a new project name called “Project Ubin”
 
What is Project Ubin? it is aimed at creating a digital token for the Singapore dollar on the Ethereum Blockchain.
 
In detail, it is a collaborative project with industry partners for the clearance and settlement of inter-banking payments and securities by exploring the use of Distributed Ledger Technology.
 
MAS launched three-phase exercise
 
Phase1 -Research and Study about blockchain Technology
Phase2 -How to use blockchain platforms and tokenization in the daily settlement
Phase3 - explored the potentials of a tokenized national currency through blockchain technology.

Refer: Monetary Authority of Singapore

Bitdeal- Cryptocurrency exchange development Company

Bitdeal has a high reputation for providing progressive and innovative cryptocurrency exchange services around the globe. We at bitdeal providing high-end services for the cryptocurrency exchange development to those who looking to start an Exchange Platform in Singapore.

We having a well organized Off-Shore Development and on-site development team to deliver a project on time with 100% source code and also avail for 24/7 support.

Launch Your Cryptocurrency Exchange Platform in Singapore with Bitdeal