All securities-based crowdfunding platform operators in Singapore must be licensed by the Monetary Authority of Singapore (MAS). This is an effort by MAS to lend credibility to the sector while safeguarding investors. The Capital Markets Services (CMS) License is only awarded to institutions that are assessed to be fit and proper. The CMS License allows Funding Societies to conduct regulated activities of dealing in securities for lending-based crowdfunding to all classes of investors in Singapore.

A licence holder is required to comply with proper business conduct rules that seek to protect the interests of investors, such as ensuring proper segregation of customers’ monies and ongoing reporting requirements to the MAS.