If you’re building crypto infrastructure in Singapore—or even thinking about it—you can’t avoid MAS crypto regulations. The Monetary Authority of Singapore (MAS) has stepped up its involvement in the digital asset space, particularly after the turbulence of 2022. As the global market saw multiple collapses and scandals, Singapore was pushed to balance its reputation as a tech-forward hub with its responsibility to protect users and investors.

This isn’t just about top-down control. It’s about creating an environment where serious crypto projects can thrive under clear expectations. But for many founders and teams, these expectations still feel opaque. So let’s clarify the big questions—starting with the one that hits earliest in the build cycle.

1. Do I need a license to operate a crypto business in Singapore?

Credit From: experlu

In most cases, yes. If your platform facilitates the buying, selling, custody, or exchange of digital assets, you’ll likely need a Singapore crypto license under the Payment Services Act. This includes centralized exchanges, wallet services, staking platforms, and even some NFT or token issuance models.

MAS no longer takes a “wait and see” approach. The licensing process now examines how your firm handles risk management, user asset segregation, internal governance, and technology resilience. It also expects clear policies on how you segment users—particularly retail vs. accredited.

For startups, this doesn’t mean you can’t operate. But it does mean you’ll need structure early—especially if your product will eventually touch fiat ramps or user funds. Getting this wrong could delay fundraising, partnerships, or even force a product pivot.

2. What changed in how MAS treats custody and client funds?

The biggest shift? MAS now expects crypto custody Singapore models to treat user funds as sacred—not just tech tokens.

Previously, many platforms pooled user funds in a shared wallet. That’s no longer acceptable. Firms must now maintain segregated trust accounts, with clear controls to prevent internal misuse, operational risks, or exposure to insolvency events.

To clarify how things have evolved, here’s a quick comparison:

Operational Area	Before MAS Shift	Now Under Regulation
Client Fund Handling	Pooled with company funds	Segregated trust accounts required
Retail Access	Unrestricted access to staking/lending	Retail prohibited from high-risk products
Advertising	Minimal oversight	Strict limits on “safe” or “guaranteed” claims

If your product isn’t designed around fund segregation, onboarding the right custodians, and reporting safeguards—it’s already behind.

3. Are DeFi protocols excluded from MAS crypto regulations?

Many founders assume that DeFi is exempt. After all, smart contracts run themselves, right?

Not quite. MAS assesses control and benefit, not just the code. If your DeFi product was created by a Singapore-based team, and you or your entity benefit financially—whether through tokenomics, fees, or treasury management—you’re likely within MAS’s jurisdiction.

That applies even if users interact with the protocol directly. The logic is simple: if a protocol causes harm, MAS needs to know who can be held accountable. In that sense, decentralized doesn’t mean unregulated—it just means regulated differently.

4. MAS crypto regulations: Can I still serve retail users?

Yes—but only under stricter rules. Under the current retail crypto trading regulation, MAS has drawn a line between retail and accredited investors. Retail users are considered more vulnerable to high-risk products and misleading messaging, especially around lending, yield farming, or staking.

To onboard them, platforms may need to implement:

• Cooling-off periods
• Knowledge assessments
• Educational modules
• Risk tiered access

You also can’t promote these products with “low-risk” messaging or influencer hype. MAS watches marketing just as closely as platform logic. If your product onboarding doesn’t reflect these filters, you’re at risk—even before launch.

5. What do early-stage crypto teams often get wrong about compliance?

The biggest mistake? Treating compliance as an afterthought.

Some teams delay planning until after launch or Series A, assuming they’ll “figure it out later.” By that time, key architecture decisions—like wallet design, fund routing, or even user segmentation—are already locked in. Retrofitting compliance is expensive, slow, and sometimes impossible without breaking your core model.

Another common error is underestimating how seriously MAS takes Singapore crypto compliance communication. Even meme-style marketing, token shills, or off-platform promotions can trigger reviews if they cross the wrong line.

The teams that succeed are the ones who treat compliance like product design. They ask questions early, build modular protections, and write documentation alongside code. These aren’t just regulatory wins—they’re also good UX and investor confidence boosters.

Readiness Is the New Credibility

MAS crypto regulations don’t exist to scare builders. They exist to filter out those who aren’t ready to play long-term. If your product is serious—handling real money, onboarding real users, planning for real scale—then you’re exactly the kind of team Singapore wants to support.

Just don’t wait until MAS knocks. Build with regulation in mind, and you’ll be ahead of the curve—not chasing it.