Tokenize Xchange Ceases Operations in Singapore
The cryptocurrency exchange known as Tokenize Xchange announced it will cease operations in Singapore by September 30, following a refusal from the Monetary Authority of Singapore (MAS) to grant it a digital payment token license. This news, revealed on July 20, follows a significant funding round last year where the company raised $11.5 million and expressed ambitions to grow its workforce locally, according to The Straits Times.
Relocation Plans
Previously, Tokenize had been functioning under a provisional exemption while it awaited the necessary regulatory approvals. In light of the rejection, the company has decided to relocate its business to Labuan, a federal territory of Malaysia. Here, Tokenize plans to acquire a licensed company overseen by the Labuan Financial Services Authority, with the deal expected to be finalized by the end of this month. Furthermore, Tokenize aims to apply for a license from the Abu Dhabi Global Market as part of its broader international expansion strategy.
Impact on Employees and Users
As the company prepares to exit the Singapore market, it has officially notified all 15 staff members based in Singapore, who are expected to conclude their roles by the end of September. While the reasons for MAS’s decision have not been publicly disclosed, the directive issued on June 6 requiring digital token service providers to secure licenses by June 30—or to close—has led many unlicensed exchanges to withdraw from the region. The tightening regulatory environment has prompted over 500 fintech professionals to seek opportunities in more accommodating locations such as the UAE and Hong Kong.
Withdrawal Process for Users
For users in Singapore, trading in cryptocurrencies on the Tokenize platform has ceased, leaving them with the options of either withdrawing their Singapore dollar balances or transferring their crypto assets to other exchanges. These actions are based on the account balances recorded as of midnight on July 18. To facilitate the winding down, Tokenize has implemented a tiered withdrawal system based on each user’s portfolio value:
- Users with less than S$10,000 have already been able to make withdrawals since July 17.
- Users with balances between S$10,000 and S$99,999 can start withdrawing from August 1.
- Users with portfolios exceeding S$100,000 must wait until September 1 to begin their withdrawals.
However, all users must complete withdrawals before the final deadline of September 30 or risk losing access to their assets altogether.
Support for Employees and Users
Additionally, Tokenize has committed to assisting its employees in finding new jobs while maintaining its focus on obtaining regulatory approval to enhance its international footprint. Singaporean users are urged to act quickly to transfer their assets to avoid any potential disruptions in accessing their funds in the future.
