Head of International Corporate Law and Fintech Practice
Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.
OBTAINING SVF LICENSE IN SINGAPORE
An SVF (Stored Value Facility) license in Singapore is required by those entities that intend to issue electronic money or open a payment system. In 2020, the laws of Singapore changed regarding obtaining a license for SVF and other financial services. This made it possible to make the country more attractive for foreign investors.
Changes in legislation regarding the SVF license
Previously, obtaining a license for activities related to money transfers and storage of currency values was not mandatory. But according to the new rules, those businesses that provide financial services must obtain an SVF license. For non-compliance with the specified rules, the offender may pay a fine or even receive a real term of imprisonment.
License benefits
- The license is officially recognized on the world stage
- Ability to use virtual money for exchange
- There are no restrictions on the circulation of electronic money
Which financial services are covered by the SVF license?
- Use of payment accounts, electronic wallets and payment cards issued by non-banking institutions.
- Using the transfer service within the country
- Ability to make international transfers
- Issue of electronic money
- Ability to work with payment terminals
- Cryptocurrency trading
- Currency exchange (possibility of working at exchange offices in Singapore).
Those wishing to obtain an extended type of license may be subject to requirements regarding the experience and qualifications of the company’s management.
Documents for obtaining an SVF license in Singapore
- Company extract from the State Register
- Financial statements of the company. Here it is worth noting that every year an external auditor should be engaged to audit operations related to financial services.
- Company structure and resume for each member, i.e. director, supervisor, manager, etc.
- Business plan and financial forecast for the next few years. All this must be calculated in detail and presented when applying for an SVF license.
- A package of corporate documents, which should include internal management procedures, as well as cyber security protocols.
The above documents must be submitted to MAS in the form of copies and duly certified. If you do not meet the specified requirements, you may be denied a license.
Types of licenses
There are three types of SVF licenses in Singapore under the PSOA Act. You can issue one type of SVF license of your choice.
- Type 1. License to exchange money
The recipient of such a license has the right to conduct operations that are exclusively related to the exchange of money. In fact, this is an activity related to the work of currency exchange offices.
- Type 2. SPI Standard Payment Institution License
The most common type of SVF license in Singapore. It has some specifics, such as the monthly transaction turnover must not exceed S$3 million for any financial services. If two or more financial services are provided, the turnover must not exceed S$6 million.
- Type 3. MPI Extended License. This type of license is most suitable for large companies. When obtaining this type of license, the company may be subject to additional requirements.
Basic requirements for those wishing to obtain an SVF license in Singapore
- A company wishing to obtain a license must have an executive director who is a citizen of Singapore or its permanent resident
- Evidence that the company’s office is registered in Singapore
- Maintaining and submitting monthly and annual reports on financial transactions
- The company must have an employee who will comply with AML requirements
- Contribution of authorized capital and, in some cases, a guarantee deposit. The authorized capital depends on the type of SVF license that the company chooses. For the money exchange license, it is set at a lower amount than that required for the extended MPI license.
Therefore, to obtain an SVF license in Singapore, you need to familiarize yourself with the requirements for the company and, if necessary, use the help of specialists who understand all the intricacies of obtaining an SVF license in Singapore.
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