Crypto exchange Tokenize Xchange has announced that it will be shutting down its operations in Singapore by September 30. This decision comes after the Monetary Authority of Singapore rejected the exchange’s application for a digital payment token license. The news was revealed on July 20, just over a year after Tokenize Xchange raised $11.5 million and outlined plans to expand its local team.
Operating under a temporary exemption while awaiting regulatory approval, Tokenize Xchange has now made the decision to relocate its operations to Labuan, a Malaysian federal territory. The company is in the process of acquiring a licensed entity regulated by the Labuan Financial Services Authority, with the acquisition expected to be finalized by the end of September. Additionally, Tokenize Xchange intends to seek a license from Abu Dhabi Global Market as part of its efforts to expand internationally.
All 15 employees based in Singapore have been served notice and will be leaving by the end of September. While the specific reasons behind MAS’ decision to withhold the license have not been disclosed, Singapore users are no longer able to trade cryptocurrencies on the platform. They are advised to withdraw their Singapore dollar cash balances or transfer their crypto holdings to other exchanges based on a portfolio snapshot taken at midnight on July 18.
Tiered withdrawals are currently underway as Tokenize Xchange winds down its operations. Users with portfolios below S$10,000 have been able to withdraw cash and transfer their crypto assets since July 17. Those holding between S$10,000 and S$99,999 can begin withdrawals from August 1, while users with portfolios exceeding S$100,000 must wait until September 1 to initiate withdrawals. Users who miss the initial withdrawal window can still transfer their assets until the final deadline on September 30.
The regulatory clampdown by MAS, which required all digital token service providers targeting overseas clients to be licensed by June 30 or cease operations, has led to a wave of departures from unlicensed exchanges in Singapore. Tokenize Xchange aims to support its staff in finding new employment opportunities and remains focused on obtaining approval from Abu Dhabi to expand its global presence. Singapore users are urged to complete their asset transfers promptly to avoid any disruptions.
In conclusion, the closure of Tokenize Xchange’s Singapore operations marks a significant development in the crypto exchange landscape. The company’s decision to relocate to Malaysia and pursue licensing in Abu Dhabi reflects its commitment to navigating regulatory challenges and expanding its reach in the global market. Users are encouraged to stay informed about the latest updates and take necessary actions to secure their assets during this transitional period.