Cryptocurrency exchange Tokenize Xchange will cease its operations in Singapore by the end of September, following the Monetary Authority of Singapore’s (MAS) rejection of its application for a digital payment token license, according to The Business Times.
The platform had been operating under a temporary exemption while awaiting regulatory approval. With the license bid now denied, Tokenize will shut down its Singapore entity and lay off all 15 locally based staff. Some may be offered roles in the company’s overseas offices.
MAS recently proposed tighter regulations for digital token service providers, raising compliance standards for industry players.
In response to the setback, Tokenize will shift its base of operations to Labuan, Malaysia’s offshore financial centre, and is in the process of acquiring a licensed entity regulated by the Labuan Financial Services Authority, with the move expected to be completed by 30 September.
The exchange is also exploring expansion into the Middle East, with plans to obtain regulatory approval from Abu Dhabi Global Market (ADGM), a key financial hub in the UAE.
Founder and CEO Hong Qi Yu described the transition as an opportunity to strengthen the company’s international presence and consolidate its operations outside of Singapore.
The withdrawal comes just over a year after Tokenize raised US$11.5 million in funding and announced plans to expand its Singapore team to 100 people. At the time, the company was positioning itself to better navigate Southeast Asia’s varied regulatory environment.
Founded in 2017, Tokenize Xchange offers digital asset trading services to both retail and institutional clients in Malaysia and Vietnam.
