SINGAPORE: The Monetary Authority of Singapore (MAS) is monitoring the return of money and assets from Tokenize Xchange to its customers, the regulator said on Friday (Jul 25).
This comes after the digital asset exchange said on Jul 20 that it had ceased operations in Singapore.
MAS rejected its application for a digital payment token license on Jul 4.
Amazingtech, operating as Tokenize Xchange, was exempted from licensing under the Payment Services Act 2019 (PS Act) while its application was being reviewed.
"This temporary exemption applied to entities that were carrying on regulated activities at the time the PS Act came into force, and would end when the licence application was approved, rejected or withdrawn," said MAS.
It added that sufficient notice would be given to unsuccessful applicants before a final decision is issued.
Since the application was rejected, Tokenize Xchange is required to stop providing regulated activities and wind down in an orderly manner. It is also required to ensure that money and assets received from customers are returned.
"MAS is monitoring Amazingtech's progress in doing so," the regulator said.
Tokenize Singapore's 15 employees will be laid off by Sep 30, the company said, though some staff may be offered work in its international operations.
Staff who remain with the company will assist Singapore users until Sep 30, and Tokenize will support its employees' efforts to pursue new career opportunities.
Tokenize's exit comes as other exchanges such as Bitget and Bybit are considering leaving Singapore, according to a Bloomberg report.
In a press release on Jul 20, Tokenize said Singapore users can no longer buy or sell cryptocurrencies on the platform, but can transfer their assets to other platforms. They can also initiate cash withdrawals.
The value of their portfolio in Singapore dollars as of 12am on Jul 18 will determine when they can withdraw their assets.
Those with portfolio values under S$10,000 (US$7,800) can withdraw or transfer their assets from Jul 20, and those with portfolios between S$10,000 and S$99,999 can do so from Aug 1.
Customers whose portfolios are worth S$100,000 or more can withdraw their assets from Sep 1.
All transfers and withdrawals must be completed by Sep 30.
Tokenize Xchange on Jul 20 said it would relocate to Labuan, Malaysia, after MAS rejected its application.
It is trying to obtain a license from the Labuan Financial Services Authority to operate under a regulated framework and continue serving its international customers.
The company is also in the process of acquiring a company that holds a digital financial services license issued by the Labuan Financial Services Authority, and the deal is expected to close soon, said Tokenize.
"Labuan will allow Tokenize to operate under a recognised regulatory framework tailored for cross-border digital asset services," the company said.
"It also offers greater flexibility, tax efficiency, and access to international markets, supporting the platform’s global growth ambitions."
Tokenize is also interested in obtaining its Abu Dhabi Global Market (ADGM) license to enhance its regulatory credibility and expand its global footprint.
"While we regret this outcome in Singapore, we view this development as an opportunity to fortify our international operations," said Mr Hong Qi Yu, chief executive officer and founder of Tokenize Xchange.
"Our forthcoming Labuan license and ADGM license underline our unwavering commitment to regulatory compliance, security, and providing a trusted platform for our global users," he said.
Continue reading...
This comes after the digital asset exchange said on Jul 20 that it had ceased operations in Singapore.
MAS rejected its application for a digital payment token license on Jul 4.
Amazingtech, operating as Tokenize Xchange, was exempted from licensing under the Payment Services Act 2019 (PS Act) while its application was being reviewed.
"This temporary exemption applied to entities that were carrying on regulated activities at the time the PS Act came into force, and would end when the licence application was approved, rejected or withdrawn," said MAS.
It added that sufficient notice would be given to unsuccessful applicants before a final decision is issued.
Since the application was rejected, Tokenize Xchange is required to stop providing regulated activities and wind down in an orderly manner. It is also required to ensure that money and assets received from customers are returned.
"MAS is monitoring Amazingtech's progress in doing so," the regulator said.
Tokenize Singapore's 15 employees will be laid off by Sep 30, the company said, though some staff may be offered work in its international operations.
Staff who remain with the company will assist Singapore users until Sep 30, and Tokenize will support its employees' efforts to pursue new career opportunities.
Tokenize's exit comes as other exchanges such as Bitget and Bybit are considering leaving Singapore, according to a Bloomberg report.
TRANSFERS, PHASED WITHDRAWALS
In a press release on Jul 20, Tokenize said Singapore users can no longer buy or sell cryptocurrencies on the platform, but can transfer their assets to other platforms. They can also initiate cash withdrawals.
The value of their portfolio in Singapore dollars as of 12am on Jul 18 will determine when they can withdraw their assets.
Those with portfolio values under S$10,000 (US$7,800) can withdraw or transfer their assets from Jul 20, and those with portfolios between S$10,000 and S$99,999 can do so from Aug 1.
Customers whose portfolios are worth S$100,000 or more can withdraw their assets from Sep 1.
All transfers and withdrawals must be completed by Sep 30.
RELOCATION TO LABUAN
Tokenize Xchange on Jul 20 said it would relocate to Labuan, Malaysia, after MAS rejected its application.
It is trying to obtain a license from the Labuan Financial Services Authority to operate under a regulated framework and continue serving its international customers.
The company is also in the process of acquiring a company that holds a digital financial services license issued by the Labuan Financial Services Authority, and the deal is expected to close soon, said Tokenize.
"Labuan will allow Tokenize to operate under a recognised regulatory framework tailored for cross-border digital asset services," the company said.
"It also offers greater flexibility, tax efficiency, and access to international markets, supporting the platform’s global growth ambitions."
Tokenize is also interested in obtaining its Abu Dhabi Global Market (ADGM) license to enhance its regulatory credibility and expand its global footprint.
"While we regret this outcome in Singapore, we view this development as an opportunity to fortify our international operations," said Mr Hong Qi Yu, chief executive officer and founder of Tokenize Xchange.
"Our forthcoming Labuan license and ADGM license underline our unwavering commitment to regulatory compliance, security, and providing a trusted platform for our global users," he said.
Continue reading...