Tokenize Xchange to exit Singapore after being denied digital payment token licence

[SINGAPORE] Cryptocurrency exchange Tokenize Xchange will cease its Singapore operations from Sep 30.

This comes after the Monetary Authority of Singapore (MAS) decided not to grant the company a licence to offer digital payment token services, said the Singapore-based digital exchange platform on Sunday (Jul 20).

All 15 employees of Tokenize Singapore will be laid off by Sep 30. However, some may be offered work in the company’s international operations, said Tokenize Xchange in response to queries from The Business Times. It declined to comment on why the company was denied a licence by the MAS.

The exchange is relocating to Labuan, and seeking to obtain a licence from the Labuan Financial Services Authority. It is also currently in the midst of acquiring a company that holds a digital financial services licence issued by the Labuan Financial Services Authority. The deal is expected to close by Sep 30.

It will also seek regulatory approval from Abu Dhabi Global Market, a financial zone located in Abu Dhabi, the capital of the United Arab Emirates.

Hong Qi Yu, chief executive and founder of Tokenize Xchange, said: “While we regret this outcome in Singapore, we view this development as an opportunity to fortify our international operations.”

Tokenize Xchange’s exit comes just over a year after raising US$11.5 million in funding and announcing plans to expand its Singapore team to 100 staff. The expansion was said to help the company adapt to complex regulatory frameworks across South-east Asia.

It was previously operating under an exemption in Singapore. It was among the first three digital asset exchange operators to receive full approval from the Securities Commission Malaysia in April 2020, and is Malaysia’s second-largest digital asset exchange.

Founded in 2017, Tokenize has operations in key Asian markets including Singapore, Malaysia and Vietnam, serving both individual and institutional investors.