In the fast-evolving world of crypto and fintech, setting up shop in the right jurisdiction can be the difference between thriving and merely surviving. If you’re eyeing Singapore—a financial powerhouse with a pro-innovation regulatory approach—you’re already on the right path. But what’s the golden key to unlocking the full potential of your crypto business in this region? It’s the Major Payment Institution (MPI) Licence under the Payment Services Act (PSA).
For anyone seeking a comprehensive license that covers a range of crucial activities for a crypto business, the MPI licence stands out as the most suitable. It’s your ticket to operating with freedom, scale, and legitimacy in one of the world’s most forward-thinking financial hubs. In this article, we’ll dive deep into five essential activities that come with the MPI licence and explain why this licence should be at the top of your list if you’re serious about thriving in the crypto space.
1. Account Issuance Services: Build the Foundation of Digital Financial Freedom
One of the key activities under the MPI licence is the ability to offer account issuance services. Imagine providing your customers with secure e-wallets or digital payment accounts where they can store their funds—whether fiat or crypto—and seamlessly manage their assets.
For a crypto business, this is essential. You need a way for users to store and transfer their digital assets in a secure and regulated environment. By offering account issuance services, you become a trusted partner in your clients’ financial journey, allowing them to manage their crypto holdings or fiat currencies through accounts that comply with Singapore’s rigorous security and legal standards.
This capability isn’t just about storing money; it’s about building trust with your customers. In a sector where security is paramount, the MPI licence allows you to provide secure, regulated accounts that offer your customers peace of mind. And in the world of crypto, trust is everything.
2. Cross-border and Domestic Money Transfers: Powering Global Financial Flows
If your goal is to go beyond Singapore and offer cross-border money transfer services, the MPI licence has you covered. With this activity, you can facilitate transfers of funds, both domestically and internationally.
For crypto businesses, this is a game-changer. Cryptocurrencies are global by nature, and your customers need to move funds across borders quickly, easily, and securely. Whether they’re sending remittances, paying for goods, or transferring assets between wallets, the MPI licence lets you offer seamless global transfers—integrating fiat and crypto in a way that works for today’s interconnected financial systems.
Unlike smaller licenses that limit your transaction volumes, the MPI licence removes those shackles. You’re free to process large transactions without worrying about monthly caps, making this ideal for high-volume crypto businesses dealing with international clients and partners.
3. Merchant Acquisition: Enable Seamless Crypto Payments for Businesses
Merchant acquisition services allow you to facilitate the acceptance of crypto payments on behalf of merchants, a vital part of any crypto economy. With an MPI licence, you’re empowered to provide this service, enabling businesses to accept digital payment tokens like Bitcoin or Ethereum, or even stablecoins, as payment for goods and services.
Think about the opportunities here. With the surge in crypto adoption, more and more businesses are looking to integrate crypto payments. By offering merchant acquisition services, you position yourself as a bridge between traditional business operations and the new world of digital payments. You’ll be able to handle payments on behalf of merchants, ensuring they are compliant with regulations while tapping into the benefits of cryptocurrency.
This is not just an advantage—it’s an entry into the heart of the crypto economy, allowing businesses to interact with the blockchain world without worrying about the complexities of regulatory compliance.
4. E-money Issuance: Offer Digital Fiat for the Crypto World
Under the MPI licence, you can also engage in e-money issuance, meaning you can issue digital money that represents fiat currency. E-money serves as a bridge between the fiat and crypto worlds, allowing users to easily move between traditional currency and digital assets.
For crypto businesses, this is essential. You can issue e-money to customers, allowing them to convert their fiat into e-money, which can be used on your platform for payments, transfers, or even purchases of crypto. It smooths the transition between the traditional banking system and your crypto platform, offering customers a more integrated and streamlined experience.
The ability to issue e-money also enables you to function as a one-stop financial hub, making it easy for customers to handle all their financial transactions—from holding fiat to purchasing and trading crypto—all within your ecosystem.
5. Digital Payment Token (DPT) Services: Dive into the Heart of Crypto Operations
This is perhaps the most important activity for any crypto business under the MPI licence: offering digital payment token (DPT) services. Essentially, this allows you to operate as a cryptocurrency exchange or wallet service provider, where users can trade, buy, sell, or store their digital assets.
This is the core of what makes the MPI licence perfect for crypto businesses. With DPT services, you can offer your customers the ability to engage directly in the crypto economy. Whether they’re trading Bitcoin, holding Ethereum, or exploring new altcoins, you can provide the infrastructure they need.
Furthermore, you’ll be regulated under Singapore’s strict AML/CFT laws, ensuring that you’re compliant with global standards for preventing money laundering and terrorist financing. This boosts your credibility, reassuring both customers and institutional partners that your platform operates within a secure and regulated framework.
Why the MPI Licence is the Most Suitable for Crypto Businesses in Singapore
Singapore has become a leading global hub for fintech and cryptocurrency due to its clear, business-friendly regulatory framework. But to play in this market, you need the right licence—one that covers all the essential activities your crypto business requires. The MPI licence is the perfect choice because:
- It allows for a wide range of services, from e-money issuance and merchant acquisition to cross-border payments and DPT services.
- It offers the flexibility to operate at scale, without transaction limits that could stifle your growth.
- It provides a strong regulatory framework that enhances trust and credibility, both with customers and institutional partners.
- It allows you to offer the full spectrum of crypto services, integrating traditional financial systems with the emerging world of digital assets.
In short, if you’re serious about succeeding in the crypto space and want to leverage the benefits of operating in a jurisdiction known for innovation and stability, obtaining an MPI licence under the Payment Services Act in Singapore is your best bet.
By securing this licence, you’ll not only future-proof your business but also position yourself at the cutting edge of the global crypto revolution.