Singapore Tokenize Xchange urges users to withdraw or transfer assets by Sep 30 after failing to secure MPI licence

SINGAPORE: Tokenize Xchange, a Singapore-based digital exchange platform, has told its users to complete the cash withdrawals or crypto transfers of their assets by Sep 30, after the platform failed to secure a major payment institution (MPI) licence from the Monetary Authority of Singapore (MAS), The Edge Singapore reported.

The exchange had been operating under an exemption, but will no longer be available to Singapore users. This means they can no longer buy or sell cryptocurrencies on the platform.

Withdrawal schedule based on portfolio size

Tokenize has rolled out a phased withdrawal schedule based on portfolio value, as determined at 12 a.m. on Jul 18, using a portfolio snapshot viewable in users’ wallets.

• Users with assets under S$10,000 (crypto and fiat combined) must withdraw by Jul 31.
• Users with assets between S$10,000 and S$99,999 can withdraw from Aug 1 to 31.
• Users with assets of S$100,000 and above can withdraw from Sep 1 to 30.

If users under the first two tiers miss their respective schedules, they may still complete withdrawals by Sep 30.

The company said it is in the process of acquiring a digital financial services (DFS) licence from the Labuan Financial Services Authority (LFSA). The deal is expected to conclude soon, it stated in its statement on Sunday (Jul 20).

Operating in Labuan will allow the company to tap into a recognised regulatory framework for cross-border digital asset services. According to the company, it also offers tax efficiency and access to international markets.

The company added that it also plans to secure a licence from the Abu Dhabi Global Market (ADGM) to enhance the company’s global footprint.

Tokenize Xchange CEO and founder Hong Qi Yu said they “regret” the outcome in Singapore but view it as an opportunity to fortify their international operations.

Tokenize was founded in 2017 and supports over 80 digital assets, including Bitcoin and Ethereum. The company, which has between 201 and 500 employees according to its LinkedIn page, said it will support its Singapore staff in pursuing new career opportunities until Sep 30. /TISG

Read also: Nvidia CEO to sell more advanced chips to China after H20 ban, warns of ‘tremendous loss’ for firms in potential US$50B AI market