Tokenize Xchange to Exit Singapore Following Regulatory Setback

Cryptocurrency platform Tokenize Xchange will cease its operations in Singapore by September 30 after the Monetary Authority of Singapore (MAS) declined its application for a digital payment token licence.

The company had been operating under a temporary exemption while awaiting regulatory approval. The announcement, made on July 20, comes slightly over a year after the firm raised $11.5 million and laid out plans to expand its local team.

In response to the licensing rejection, Tokenize is redirecting its operations to Labuan, Malaysia, where it is acquiring a licensed entity under the jurisdiction of the Labuan Financial Services Authority. The acquisition is expected to close by the end of September. Additionally, the firm intends to seek licensing in Abu Dhabi Global Market as part of its broader international strategy.

All 15 employees in the Singapore office have reportedly received notice and are set to leave by the end of September. The company did not specify the reasons behind MAS' decision.

Withdrawals are being processed in phases based on users' portfolio value as of July 18. Customers with assets under S$10,000 began withdrawing on July 17. Those holding S$10,000 to S$99,999 can initiate transfers starting August 1, while withdrawals for portfolios above S$100,000 will open on September 1. All transfers must be completed by September 30.

Tokenize's exit reflects a broader tightening of digital asset regulations in Singapore. A recent MAS directive required digital token service providers serving overseas clients to be fully licensed by June 30 or exit the market. The resulting shift has spurred several companies and professionals to consider relocating to more crypto-friendly jurisdictions such as the UAE or Hong Kong.