Crypto exchange Tokenize Xchange will shut down its Singapore operations by Sept. 30, following the Monetary Authority of Singapore’s decision to reject its application for a digital payment token licence.
The announcement, made on July 20, comes just over a year after the exchange raised $11.5m and revealed plans to expand its local team, local outlet The Straits Times reported.
The firm had been operating under a temporary exemption while awaiting regulatory approval.
Tokenize to Relocate Operations to Malaysia After Licence Snub
Tokenize now plans to shift operations to Labuan, a Malaysian federal territory, where it is acquiring a licensed entity regulated by the Labuan Financial Services Authority. The acquisition is expected to close by the end of September. The company also intends to seek a licence from Abu Dhabi Global Market as part of its efforts to expand internationally.
All 15 Singapore-based employees have reportedly been served notice and will leave by the end of September. The company did not disclose the specific reasons behind MAS’ decision to withhold the licence.
Singapore users can no longer trade cryptocurrencies on the platform. Instead, they may withdraw their Singapore dollar cash balances or transfer crypto holdings to other exchanges, based on a portfolio snapshot taken at midnight on July 18.
Tiered Withdrawals Underway as Tokenize Winds Down
Additionally, Tokenize clarified how tiers are assigned. The portfolio value shown in each user’s wallet will determine their withdrawal tier.
Users with portfolios below S$10,000 have been able to withdraw cash and transfer their crypto assets since July 17. Meanwhile, those holding between S$10,000 and S$99,999 can start from August 1. Finally, users with portfolios exceeding S$100,000 must wait until Sept. 1 to begin withdrawals.
Users who miss the initial window for lower-tier withdrawals can still act. They will have until the final Sept. 30 deadline to move their assets.
The company’s exit follows MAS’ June 6 directive requiring all digital token service providers targeting overseas clients to be licensed by June 30 or cease operations.
The regulatory clampdown has triggered a wave of departures. As a result, many unlicensed exchanges are exiting Singapore. More than 500 fintech employees are reportedly planning to relocate to friendlier jurisdictions such as the UAE or Hong Kong.
Tokenize says it will support its staff in finding new employment and remains focused on securing approval from Abu Dhabi to grow its global presence. Singapore users, meanwhile, are advised to complete their asset transfers promptly to avoid disruption.
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