Walking the Tightrope: How Global Regulators Are Shaping Crypto Access for the Affluent Middle
The global wealth landscape is shifting as mass affluent investors, those with mid six to low seven figure portfolios, seek greater exposure to digital assets. Yet the path to accessible and regulated crypto investment remains a careful balancing act. Regulators in leading jurisdictions such as Singapore’s Monetary Authority of Singapore (MAS) and the United Kingdom’s Financial Conduct Authority (FCA) are pioneering frameworks that allow financial institutions to offer crypto services to affluent clients while shielding retail investors from excessive risk.
This blog explores how regulatory sandboxes, accreditation models, and compliance technology are shaping the crypto affluent market, with a focus on Singapore and the United Kingdom.
Accreditation models: defining the crypto affluent threshold
Both MAS and FCA frameworks use accreditation thresholds to distinguish affluent investors from retail participants. This distinction allows financial institutions to offer expanded crypto services to investors with greater risk tolerance and financial sophistication.
In Singapore, MAS defines an accredited investor as an individual with net personal assets exceeding S$2 million, excluding the value of their primary residence, or financial assets of at least S$1 million (DBS, 2024 [6]). This rule supports DBS Bank’s expansion of crypto trading services to affluent clients through its digital exchange, providing broader access under a structured regulatory framework.
In the United Kingdom, the FCA considers a person a high net worth individual if they have net assets of £250,000 or more, excluding their primary residence, pensions, or certain insurance contracts. These individuals must also self certify and meet specific income or wealth criteria before participating in crypto related investments.
Both jurisdictions focus on ensuring investors have the financial capacity and understanding to manage digital asset risks while keeping protective barriers in place for retail investors.
Product restrictions: stablecoins and simplified offerings
To minimize risk for less experienced investors, regulators have introduced product level restrictions tailored to the mass affluent segment. This often involves limiting exposure to more volatile or complex crypto instruments.
MAS supports stablecoin focused portfolios that provide exposure to blockchain innovation with less volatility.
The FCA restricts access to high risk derivatives and leveraged crypto products, instead encouraging transparent and well understood investment options (FT Wealth, 2024 [5]).
These measures help connect mainstream wealth management practices with emerging digital asset opportunities in a way that balances access with caution.
Compliance tech: the foundation of regulated crypto services
As banks and fintech firms scale crypto offerings for affluent clients, compliance technology is becoming essential. It helps institutions meet regulatory expectations and ensure safe access for qualified investors.
Key advancements include:
Blockchain analytics tools for real time transaction monitoring and anti money laundering compliance
AI powered customer due diligence tools that verify accredited investor status based on jurisdictional criteria
Smart contract audit systems that reduce risk in tokenized investments (Finextra, 2024 [4])
These tools allow regulators to maintain transparency and enforce compliance while encouraging responsible innovation.
Comparing regulatory approaches in Singapore and the United Kingdom
While both Singapore and the United Kingdom aim to enable structured crypto adoption, their approaches reflect different market philosophies.
Singapore takes a growth-oriented stance by incorporating crypto into wealth management through stablecoins and tokenized real-world assets.
The United Kingdom’s approach is more conservative, prioritizing consumer protection and placing limits on certain high risk investment types.
Both strategies highlight how global regulators are working to establish a stable and secure pathway for mass affluent investors to enter crypto markets without undermining retail safeguards.
What to expect from evolving crypto regulations
As the crypto space matures, regulators are expected to:
Broaden accreditation frameworks to include tokenized funds and other structured assets
Harmonize international compliance standards, allowing cross border asset management with fewer barriers
Introduce more advanced AI driven tools for onboarding and compliance that reduce friction while enhancing transparency
These trends point to a future where crypto access is more inclusive, without compromising oversight or investor safety.
Stay ahead of global crypto regulation
Wealth managers, fintech innovators, and compliance professionals need timely insights as the regulatory landscape evolves.
Stay connected to the Molokai Group as we continue to dive into the latest updates on accreditation models, compliance innovations, and regulatory sandboxes shaping digital asset access worldwide.
