Lithuania vs Singapore Crypto License: Which Jurisdiction Fits Your Business?
Choosing the right jurisdiction for your crypto license is one of the most critical decisions a crypto founder will make. In 2026, two of the most discussed options are Lithuania and Singapore. Both offer clear regulatory frameworks, but they differ significantly in cost, capital requirements, tax treatment, and operational scope. This page provides a detailed, factual comparison of the Lithuania vs Singapore crypto license to help you decide which path aligns with your business model.
Lithuania, as an EU member state, operates under the full MiCA regime with a CASP license, while Singapore offers a Payment Services Act (PSA) license for digital payment token services. Consulting24 advises and coordinates licensing in both jurisdictions, drawing on our experience with 500+ crypto licenses. We do not file directly in Singapore but provide strategic guidance and can manage your Lithuania application in-house.
What Is a Crypto License in Lithuania and Singapore?
A crypto license is an official authorisation that allows a company to legally offer cryptocurrency services such as exchange, custody, or transfer. In Lithuania, the license is called a Crypto Asset Service Provider (CASP) license under the MiCA regulation, which is fully in force as of 2026. In Singapore, the equivalent is a Major Payment Institution (MPI) license under the Payment Services Act (PSA), specifically for Digital Payment Token (DPT) services.
Both licenses are mandatory for businesses that want to operate compliantly. Operating without a license can lead to fines, legal action, and reputational damage. The choice between Lithuania and Singapore often comes down to your target market, budget, and operational preferences. For example, a startup serving EU retail clients would benefit from Lithuania's passporting, while a large OTC desk targeting Asian institutional investors might prefer Singapore's reputation.
Who Needs a Crypto License in These Jurisdictions?
Any business that provides crypto-related services to customers in Lithuania or Singapore needs a license. This includes:
- Crypto exchanges (centralised and decentralised if offering custody)
- Wallet providers
- Brokers and dealers in crypto assets
- Payment processors using crypto
- OTC desks
- Token issuers (if the token is considered a crypto asset)
If you plan to serve EU customers, Lithuania's MiCA license allows passporting across all 27 member states. Singapore's license is ideal for serving customers in Asia, particularly Singapore residents and the broader Southeast Asian market. A common scenario is a fintech that wants to offer crypto trading to both EU and Asian users; in that case, you may need dual licensing.
License Type and Regulator
| Jurisdiction | License Type | Regulator |
|---|---|---|
| Lithuania | CASP (Crypto Asset Service Provider) | Bank of Lithuania |
| Singapore | MPI license (DPT services) | Monetary Authority of Singapore (MAS) |
The Bank of Lithuania is known for its pragmatic approach, while MAS is one of the most respected financial regulators globally, with a reputation for rigorous oversight. Both regulators require strong AML/CFT policies. The Bank of Lithuania has streamlined its process for MiCA, while MAS conducts detailed on-site inspections and expects a high level of compliance maturity.
Cost and Timeline
The cost and timeline for obtaining a crypto license vary significantly between Lithuania and Singapore. Below is a comparison based on current 2026 data.
| Item | Lithuania (CASP) | Singapore (MPI) |
|---|---|---|
| Application fee | ~EUR 1,500 | SGD 1,000 (non-refundable) |
| Professional fees (Consulting24) | From EUR 15,000 | From EUR 25,000 (advisory only) |
| Minimum capital | EUR 50,000 / 125,000 / 150,000 (by service class) | SGD 250,000 (for DPT services) |
| Timeline | 3-6 months | 6-12 months |
| Ongoing compliance costs | ~EUR 10,000-20,000/year | ~SGD 30,000-50,000/year |
Exact pricing for Singapore is confirmed in a consultation due to case-by-case complexity. Consulting24 advises and coordinates the Singapore process, while we deliver the Lithuania license directly. For a more affordable entry point, consider Panama with a flat EUR 6,000 fee.
Capital Requirement
Lithuania's capital requirement under MiCA is tiered based on the services offered: EUR 50,000 for reception and transmission of orders, EUR 125,000 for exchange and custody, and EUR 150,000 for full-service CASPs. Singapore requires SGD 250,000 in base capital for an MPI license covering DPT services, but higher amounts may be required if the business handles large transaction volumes (e.g., SGD 5 million for payment services exceeding certain thresholds).
Both jurisdictions require the capital to be held in liquid assets and maintained throughout the license period. For example, if your Lithuania CASP offers custody and exchange, you need EUR 125,000 in share capital, which can be used for operational expenses but must stay above the threshold.
Tax Treatment
Lithuania applies a corporate income tax of 15% (reduced to 5% for small companies with fewer than 10 employees and income under EUR 300,000). Crypto-to-crypto trades are generally exempt from VAT. Capital gains on crypto are taxed as income.
Singapore offers a territorial tax system: only income derived from or remitted to Singapore is taxed. The corporate tax rate is 17%, with generous exemptions for new startups (first SGD 100,000 exempt, next SGD 200,000 at 50% exemption). Crypto transactions are subject to goods and services tax (GST) only if the business provides services to Singaporean customers. Capital gains are not taxed, which is a major advantage for traders. For example, a proprietary trading firm in Singapore pays 0% on capital gains, while in Lithuania, those gains would be taxed as corporate income.
Allowed Activities
Under the MiCA framework, Lithuania allows the following activities: exchange of crypto assets for fiat or other crypto assets, custody and administration, operation of a trading platform, reception and transmission of orders, and advice on crypto assets. Stablecoin issuance is also regulated.
Singapore's PSA allows DPT services, which include buying, selling, or facilitating the exchange of DPTs, and providing custodial services for DPTs. However, MAS has recently tightened rules on retail access and use. Activities like decentralised finance (DeFi) protocols may fall outside the current scope and require additional licensing. For example, a decentralised exchange with non-custodial wallets may not need a license in Singapore if it does not handle customer funds, but in Lithuania, it would likely need a CASP.
Step-by-Step Process
Both jurisdictions follow a structured application process. Below is a high-level overview.
Lithuania Process
- Company incorporation in Lithuania (or registration of a branch).
- Preparation of AML/CFT policies, risk assessment, and business plan.
- Appointment of a local AML officer (can be the director).
- Submission of application to the Bank of Lithuania.
- Review and potential interview with the regulator.
- Issuance of CASP license.
Singapore Process
- Incorporation of a Singapore company (private limited).
- Appointment of at least one local director (Singapore resident).
- Preparation of detailed compliance policies, including AML/CFT and technology risk management.
- Submission of license application to MAS.
- MAS review, which may include on-site inspections and interviews.
- Issuance of MPI license.
Consulting24 advises on both processes and handles the Lithuania application directly. For Singapore, we coordinate with local partners. The Lithuania process is generally faster due to the standardised MiCA framework, while Singapore's timeline can vary based on the complexity of the business model.
Banking and Payments
Access to banking is a common challenge for crypto businesses. Lithuania has a growing number of crypto-friendly banks and EMI (electronic money institution) partners, such as PayrNet and Satchel. However, some traditional banks remain cautious. Consulting24 can introduce you to vetted banking partners. For example, a Lithuania CASP can open an account with a local EMI that supports fiat on/off ramps for crypto exchanges.
Singapore has a more developed banking ecosystem, with DBS, OCBC, and UOB offering services to licensed crypto firms. MAS has also introduced a sandbox for digital assets. However, due diligence is strict, and banks may require a track record of compliance. A newly licensed MPI may need to provide audited financials and proof of AML procedures before a bank account is opened.
Benefits of Each Jurisdiction
Lithuania offers a cost-effective entry to the EU market with a clear MiCA framework, fast processing (3-6 months), and passporting rights. It is ideal for startups and SMEs. For example, a small exchange can launch in Lithuania with EUR 50,000 capital and serve all EU countries.
Singapore provides a stable, reputable regulatory environment with no capital gains tax, access to Asian markets, and a strong financial infrastructure. It is better suited for larger operations with higher budgets and a focus on Asia. A Singapore MPI can also apply for exemptions to offer services in other ASEAN countries under certain conditions.
Compliance and Trust
Both jurisdictions require strong AML/CFT measures, including customer due diligence, transaction monitoring, and suspicious transaction reporting. Lithuania also mandates the appointment of a local AML officer. Singapore requires a resident director and a compliance officer.
General guidance: compliance is an ongoing commitment. Failure to maintain standards can result in license revocation. This page provides general guidance, not legal advice. Always consult with a qualified advisor for your specific situation. Consulting24 helps clients implement compliance frameworks that meet both local and international standards.
Common Mistakes to Avoid
- Underestimating the time and cost of compliance, especially in Singapore. Many applicants fail to budget for ongoing AML software and personnel.
- Choosing a jurisdiction based solely on cost without considering your target market. A cheap license in Lithuania is useless if your customers are in Asia.
- Failing to appoint a local director or AML officer where required. In Singapore, the local director must be a resident and may be personally liable for compliance failures.
- Submitting incomplete or poorly prepared applications. Both regulators reject applications that lack detail, especially on AML policies and business models.
- Ignoring ongoing reporting obligations after license issuance. Lithuania requires annual reports, while Singapore requires quarterly transaction reporting.
Alternatives and Comparisons
Besides Lithuania and Singapore, other popular crypto licensing jurisdictions include Panama (flat EUR 6,000, no specific crypto license but a general fintech license), Estonia (now under MiCA, similar to Lithuania but with a different regulator), and Dubai (VARA license, ideal for the Middle East).
For a broader view, explore our jurisdictions page. Consulting24 can help you compare and choose the best option for your business. For example, if you need a quick, low-cost license for a holding company, Panama may be suitable. If you want to offer exchange services in the EU, Lithuania or Estonia are strong choices.
Why Choose Consulting24?
Consulting24 has obtained 500+ crypto licenses worldwide. We deliver directly in Lithuania, Estonia, and Panama, and advise and coordinate in other jurisdictions including Singapore. Our team provides end-to-end support: company setup, license application, compliance documentation, and banking introductions.
We do not guarantee approval, but we maximise your chances with meticulous preparation. Speak to our experts on WhatsApp or book a consultation to discuss your project. For a quick comparison, check our vs Lithuania page or cost overview.
Frequently asked questions
What is the difference between a Lithuania CASP and a Singapore MPI license?
The Lithuania CASP is a MiCA license that allows passporting across the EU. The Singapore MPI license covers DPT services under the PSA. Key differences: capital (EUR 50k+ vs SGD 250k), tax (15% vs 17% with no capital gains tax), and timeline (3-6 months vs 6-12 months).
Which jurisdiction is cheaper: Lithuania or Singapore?
Lithuania is generally cheaper: lower capital requirements, lower professional fees, and lower ongoing costs. Singapore requires SGD 250,000 capital and higher compliance spend. However, Singapore offers a tax advantage with no capital gains tax.
Can I use a Lithuania license to serve customers in Singapore?
No. A Lithuania license only allows you to serve EU customers (via passporting). To serve Singapore customers, you need a Singapore MPI license or an exemption. Consult with Consulting24 for multi-jurisdictional strategies.
How long does it take to get a crypto license in Lithuania vs Singapore?
Lithuania typically takes 3-6 months from application to approval. Singapore takes 6-12 months, sometimes longer if MAS requests additional information. Consulting24 can help streamline both processes.
What are the ongoing compliance costs for a crypto license?
In Lithuania, ongoing costs are around EUR 10,000-20,000 per year, covering AML officer salary, software, and audits. In Singapore, costs are SGD 30,000-50,000 per year, including compliance officer, reporting, and legal fees.
Is there a minimum capital requirement for a crypto license in Lithuania?
Yes, under MiCA, the minimum capital is EUR 50,000 for basic services, EUR 125,000 for exchange and custody, and EUR 150,000 for full-service CASPs. The capital must be maintained throughout the license period.
Does Singapore tax capital gains on crypto?
No, Singapore does not tax capital gains. This is a major advantage for traders and investment firms. However, income from trading as a business is subject to corporate tax at 17%.
Can I apply for a Lithuania CASP license remotely?
Yes, you can apply remotely, but you need a local registered address and a local AML officer. Consulting24 can assist with company setup and compliance arrangements.
What activities are allowed under a Singapore MPI license?
The MPI license allows digital payment token services, including buying, selling, and facilitating exchange of DPTs, and custodial services. It does not cover DeFi protocols or stablecoin issuance without additional approval.
How does Consulting24 help with Singapore licensing?
Consulting24 advises and coordinates the Singapore process, including company incorporation, compliance documentation, and liaison with local partners. We do not file directly but provide strategic guidance.
What happens if I operate without a license in Lithuania or Singapore?
Operating without a license can result in fines, legal action, and reputational damage. In Lithuania, penalties can reach EUR 100,000 or more. In Singapore, MAS can impose fines up to SGD 1 million and imprisonment.
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