Singapore-Based Crypto Exchange Development for Startups

10 min read

Singapore-Based Crypto Exchange Development for Startups

Did you know Singapore is home to over 1,600 fintech companies?

By 2025, the number of cryptocurrency users in Singapore is expected to hit 3.40 million, with a user penetration rate of 55.90%. That's a huge market opportunity!

If you're thinking about starting a crypto exchange, Singapore is a great place to begin.

What you need to focus on includes:

The right strategy
The right tech stack
Understanding local rules

To make all of this work smoothly, partnering with the right team can make a big difference. A trusted crypto exchange development team can guide you through each step and help you launch faster and smarter.

So, Whether you’re experienced or just getting started, the key is having the right strategy and understanding the local rules. In this guide, we’ll cover everything you need to know, including how to navigate regulations, choose the right technology, and build a secure platform. Singapore offers exciting opportunities to grow your crypto exchange, and we’re here to help you get started.

Singapore-Based Crypto Exchange Development for Startups

Starting a Singapore -based crypto exchange is a smart move. The country offers a stable financial system, clear regulations, and a strong demand for digital currencies. These advantages make it the perfect place to set up your exchange. Singapore provides all the essential support to help you build a successful business and attract users in the growing digital asset market. Don't miss the chance to launch your exchange here today.

Regulatory Overview: What You Need to Launch a Crypto Exchange in Singapore

Launching a crypto exchange in Singapore involves understanding the regulations.Luckily, Singapore has clear and helpful rules, making it a great place to start your exchange.

The Monetary Authority of Singapore (MAS) is the main body that regulates crypto exchanges and digital currencies, helping businesses operate responsibly and within legal boundaries.

To get started, you'll need to apply for a license under the Payment Services Act (PSA). This covers digital payment services, including crypto exchanges, and makes sure your business is legally compliant. You’ll also need to follow anti-money laundering (AML) and know-your-customer (KYC) rules, which help prevent fraud and illegal activities.

While it might seem like a lot at first, meeting these requirements sets your exchange up for long-term success and builds trust with both users and regulators. Taking the right steps from the beginning makes it easier to grow your business confidently and legally in Singapore.

Crypto Exchange Licensing Requirements in Singapore

If you're planning to launch a cryptocurrency exchange in Singapore, understanding the licensing requirements is crucial. The Monetary Authority of Singapore (MAS) regulates digital payment services under the Payment Services Act (PSA), which sets the legal framework for cryptocurrency exchanges.

Types of Licenses for Crypto Exchanges

To operate legally, crypto exchanges must obtain for a Digital Payment Token (DPT) license. This license is part of the PSA and is specifically designed for exchanges that handle cryptocurrencies. Depending on your exchange’s size and activities, there are two main types of licenses:

Standard Payment Institution License: Suitable for exchanges with lower transaction volumes.
Major Payment Institution License: Required for exchanges handling higher transaction volumes

Key Requirements for Licensing

When applying for a license, exchanges must meet several key standards, including:

Fit and Proper Criteria: Key personnel and shareholders must meet the MAS’s integrity and expertise standards.
Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT): Exchanges must have systems to prevent financial crimes.
Technology Risk Management (TRM): Exchanges need to have cybersecurity measures to protect funds and data.
Financial Soundness: The exchange must show enough capital and resources to operate securely.

Once approved, you’ll need to follow ongoing reporting and compliance obligations. MAS may request regular updates, audits, and checks to ensure everything stays in line with the rules.

Essential Features of a Cryptocurrency Exchange

To build a successful crypto exchange, certain features are crucial for security and performance. Here are the neccasary features you should include in your platform:

User Authentication: Strong login systems, including two-factor authentication (2FA) for secure access.
KYC/AML Compliance: Built-in tools to verify user identities and stop suspicious or illegal activity.
Order Book and Matching Engine: Real-time processing of buy and sell orders for accurate and fast trading.
Wallet Support: Secure support for both crypto and fiat wallets with deposit and withdrawal features.
Admin Dashboard: Controls for managing users, transactions, platform settings, and system monitoring.
Analytics and Reporting: Real-time charts, trading history, and useful reporting tools for users and admins.
Customer Support Tools: Integrated support through live chat, helpdesk tickets, or automated chatbot systems.
Mobile Compatibility: A responsive website or mobile app that lets users trade from anywhere easily.

How Much Does It Cost to Build a Crypto Exchange In Singapore?

Building a crypto exchange in Singapore can cost anywhere from SGD 80,000 to over SGD 250,000, depending on the platform’s complexity and features. A simple exchange using a white-label solution typically costs between SGD 80,000 and SGD 150,000 and includes basic functions like trading, wallet integration, and account management.

For a more advanced and customized exchange, the cost can exceed SGD 250,000. This includes features such as multi-currency wallets, advanced trading tools, compliance systems like KYC/AML, mobile app support, and custom designs. It’s also important to consider ongoing expenses for maintenance, hosting, security updates, and support.

Since Singapore has strict crypto regulations, working with a team familiar with the Monetary Authority of Singapore’s requirements ensures your platform stays compliant and avoids unnecessary delays.

Why Choose Hashcodex to Build Your Crypto Exchange?

Starting a crypto exchange in Singapore can seem challenging, but Hashcodex makes it easy. We know the rules and regulations in Singapore, and we’ve helped many businesses get their exchanges up and running. Our team has lots of experience working with the Monetary Authority of Singapore (MAS) to ensure everything is done correctly.

People choose Hashcodex because they trust the results we deliver. We’ve successfully completed many crypto exchange projects and built a strong reputation with real outcomes. Whether it's a custom solution, a white-label platform, or starting from scratch, we create the right platform for you.

What sets us apart is the support we provide, from planning to launch and beyond. We ensure everything runs smoothly, stays secure, and complies with all regulations, especially in Singapore.

FAQ

1. How many crypto exchanges are there in Singapore?

There are over 30 cryptocurrency exchanges in Singapore, including both local and international platforms. Some of these are regulated by the Monetary Authority of Singapore (MAS) to ensure compliance with the country's financial regulations.

2. Is Singapore a crypto-friendly country?

Yes, Singapore is crypto-friendly. The government has made clear rules to help crypto businesses grow and operate safely. The Monetary Authority of Singapore (MAS) oversees these businesses to keep everything secure and well-regulated.

3. Is crypto legal in Singapore?

Yes, cryptocurrency is legal in Singapore. The government has set up clear rules that allow people and businesses to use and trade crypto safely. The Payment Services Act (PSA) makes sure businesses follow important security and anti-money laundering standards.

4. How to start a crypto business in Singapore?

To start a crypto business in Singapore, follow these steps:

Register Your Company: Usually as a Private Limited Company.
Apply for a License: Get the correct license from the Monetary Authority of Singapore (MAS) under the Payment Services Act (PSA).
Follow the Rules: Make sure your business meets anti-money laundering (AML) and security requirements.
Secure Your Platform: Use security measures like cold wallets and two-factor authentication (2FA).

5. Do I need a license to operate a crypto exchange in Singapore?

Yes, you need a license to operate a crypto exchange in Singapore. The Monetary Authority of Singapore (MAS) requires exchanges to be licensed under the Payment Services Act (PSA). There are two types of licenses: