Crypto trading platform Tokenize Xchange will discontinue its operations in Singapore by the end of September following a regulatory setback with the Monetary Authority of Singapore (MAS), The Business Times has reported.
The company had applied for a digital payment token license under Singapore’s Payment Services Act but was unsuccessful.
Tokenize had been operating under a temporary exemption while awaiting the outcome of its application.
With MAS now rejecting the bid, the firm will shut down its local entity and lay off its 15 staff based in Singapore.
The regulator recently proposed updates to its framework for Digital Token Service Providers, introducing stricter compliance requirements.
Some of the affected employees may transition to other roles within the company’s overseas offices.
In light of its exit, Tokenize is moving its base of operations to Labuan, a Malaysian offshore financial centre.
It is working towards acquiring a licensed entity regulated by the Labuan Financial Services Authority, with the process targeted for completion by 30 September.
The exchange is also exploring expansion into the Middle East through regulatory approvals from Abu Dhabi Global Market (ADGM), the financial free zone in the UAE capital.
CEO and founder Hong Qi Yu framed the shift as a chance to consolidate international operations and grow the platform’s reach outside of Singapore.
The decision to withdraw from Singapore comes a little over a year after Tokenize secured US$11.5 million in funding.
At the time, it had announced plans to scale its Singapore team to 100 employees, aiming to strengthen its ability to navigate Southeast Asia’s diverse regulatory regimes.
Founded in 2017, Tokenize Xchange operates in Malaysia and Vietnam, offering digital asset trading services to both retail and institutional clients.
Featured image: Edited by Fintech News Singapore, based on image by mayaung994 via Freepik
