Singapore users can no longer trade on Tokenize and must withdraw funds or transfer crypto based on a July 18 portfolio snapshot.
After the Monetary Authority of Singapore rejected its application for a digital payment token license, crypto exchange Tokenize Xchange will cease operations in Singapore by September 30.
Local outlet The Straits Times reported that the exchange announced on July 20, just over a year after revealing intentions to expand its local team and raising $11.5 million.
The company had been operating under a provisional exemption while it awaited regulatory approval.
Tokenize to Relocate Operations to Malaysia After Licence Snub
Tokenize is acquiring a licensed entity regulated by the Labuan Financial Services Authority in Labuan, a Malaysian federal territory. The acquisition is anticipated to be finalized by the conclusion of September.
The company also plans to pursue a license from Abu Dhabi Global Market as part of its international expansion endeavors.
It has been reported that all 15 Singapore-based employees have been served notice and will depart by the end of September. The company did not disclose why MAS decided to withhold the license.
The platform no longer allows Singaporean users to exchange cryptocurrencies. Alternatively, they may transfer their crypto holdings to other exchanges or withdraw their Singapore dollar currency balances, as determined by a portfolio snapshot taken at midnight on July 18.
Tiered withdrawals are currently underway as Tokenize concludes.
Furthermore, Tokenize provided clarification regarding the assignment of tiers. The withdrawal tier of each user will be determined by the portfolio value displayed in their wallet.
Since July 17, users with portfolios less than S$10,000 can extract cash and transfer their crypto assets. In the interim, individuals who possess an amount between S$10,000 and S$99,999 may commence operations on August 1. Lastly, disbursements must be initiated by users with portfolios that exceed S$100,000 on September 1.
Users who neglect the initial window for lower-tier withdrawals may still take action. They will have until the ultimate deadline of September 30 to relocate their assets.
The company’s exit results from MAS’s directive on June 6, which mandated that all digital token service providers that target overseas clients either obtain a license by June 30 or cease operations.
The regulatory crackdown has precipitated a series of resignations. Consequently, this has led to the exit of numerous unlicensed exchanges from Singapore.
According to reports, over 500 fintech employees are contemplating relocating to more accommodating jurisdictions, including the United Arab Emirates or Hong Kong.
Tokenize has stated that it will assist its employees in securing new employment and is committed to obtaining Abu Dhabi’s sanction to expand its global presence.
In contrast, Singaporean users are encouraged to expedite their asset transfers to prevent disruptions.
