Singapore-based digital asset exchange, Tokenize Xchange, halts operations following rejection of its license application
In a significant move, Singapore-based cryptocurrency exchange Tokenize Xchange has announced that it will be shutting down its operations in Singapore by September 30, 2022. The company, which serves retail and institutional investors across Singapore, Malaysia, and Vietnam, will be relocating its operations to Labuan, a federal territory in Malaysia.
The decision comes after the Monetary Authority of Singapore (MAS) declined to grant Tokenize Xchange a full license to provide digital payment token services. The regulatory crackdown in Singapore has led to significant job losses across the fintech sector, with more than 500 staff, from management to junior levels, expected to relocate to jurisdictions like the UAE or Hong Kong due to Singapore's increasingly restrictive crypto regulations.
Tokenize's CEO, Hong Qi Yu, stated that Labuan offers greater flexibility, tax efficiency, and access to international markets. The company raised $11.5 million in funding approximately a year ago and is now pursuing regulatory approval from the Abu Dhabi Global Market to serve customers across multiple jurisdictions.
The deal to acquire a company in Labuan with a digital financial services license is expected to close by September 30. All withdrawals and transfers must be completed by the shutdown date. Singapore customers of Tokenize Xchange can now only transfer their cryptocurrency holdings to other exchanges or withdraw cash based on their portfolio values.
Reports emerged last week from users experiencing problems with withdrawals on the Tokenize platform. The shutdown of Tokenize in Singapore is part of a broader exodus of unlicensed cryptocurrency exchanges following MAS's June 6 announcement. All 15 Singapore employees of Tokenize Xchange have been given notice and will leave the company by September 30.
Singapore's evolving approach to crypto regulation has moved from a relatively permissive stance to implementing stricter oversight requirements. This shift has triggered a wave of relocations among crypto companies, with the migration of hundreds of industry professionals to competing jurisdictions potentially having lasting effects on Singapore's crypto ecosystem and innovation capacity.
However, the search results do not provide information on which company took over digital financial services in Singapore after Tokenize Xchange's exit or on which company received a license from the Labuan Financial Services Authority. Tokenize's social media presence and communications have been inactive since July 7.
The withdrawal schedule for users is based on portfolio size, with smaller users able to withdraw since July 17, larger users from August 1, and the largest users from September 1. The company's move to Labuan is seen as more accommodating for Tokenize's global growth ambitions, as Labuan's regulatory framework for cross-border digital asset services is more accommodating.
Read also:
- MRI Scans in Epilepsy Diagnosis: Function and Revealed Findings
- Hematology specialist and anemia treatment: The role of a hematologist in managing anemia conditions
- A Week in Pixelized Realm: The Transformation of the World in Digital Form
- Enhancing the framework or setup for efficient operation and growth
