July 22, 2025
By Our Correspondent
Only a little more than a year after obtaining US$11.5 million (S$14.8 million) in funding and announcing intentions to increase hiring, cryptocurrency exchange Tokenize Xchange will stop operations here on September 30, according to the Straits Times.
On July 20, the Singapore-based company announced that it would close its doors after the Monetary Authority of Singapore (MAS) denied it a license to provide digital payment token services in the country.
Previously, Tokenize operated on an exemption.
It stated that it is in the process of purchasing a business that possesses a digital financial services license issued by the Labuan Financial Services Authority in order to relocate its activities to Labuan, a federal region in Malaysia. It is anticipated that the purchase would finalize by September 30.
The Abu Dhabi Global Market, a free economic zone and global financial hub situated in Abu Dhabi, the capital of the United Arab Emirates (UAE), will also be consulted for regulatory permission.
According to Tokenize, all 15 of its Singaporean employees have received notice and will depart by September 30. Why Tokenize was not granted a license to continue operating here is still unknown.
Hong Qi Yu, the founder and CEO of Tokenize, was approached but refused to comment on the reasons behind the MAS’s license denial.
In contrast, Labuan will permit Tokenize to function under a “recognized regulatory framework tailored for cross-border digital asset services,” he told The Straits Times on July 20.
“Labuan also supports the platform’s global growth ambitions by providing increased flexibility, tax efficiency, and access to international markets,” he stated.
According to Tokenize, users in Singapore can only move their cryptocurrency holdings to other exchanges where they can withdraw their funds and convert them to cash. They are no longer able to purchase or sell cryptocurrencies on Tokenize’s platform.
However, based on the Singapore dollar worth of each user’s portfolio, which consists of both fiat and cryptocurrency assets, customers can still take out cash straight from the exchange. Under a phased timetable, this value—which customers can see in their wallets—determines the withdrawal category they are assigned to.
Since July 17, users with portfolios under $10,000 have been permitted to move their cryptocurrency to other exchanges and withdraw the cash part of their holdings.
Users with portfolios between $10,000 to $99,999 can begin doing so on August 1st, while those with $100,000 or more can begin on September 1st. By September 30th, all transfers and withdrawals must be finished.
The impending departure of Tokenize from the Republic follows MAS’s June 6 announcement that digital token service providers that exclusively cater to international clients must obtain a license by June 30 or shut down. Tokenize serves retail and institutional investors in Singapore as well as abroad, including Malaysia and Vietnam.
It is aware that the action has caused unlicensed bitcoin exchanges to leave Singapore. More than 500 employees, ranging from senior management to entry-level positions in businesses that serve the Republic’s fintech ecosystem, are anticipated to go to Hong Kong or the United Arab Emirates, where authorities are believed to have a more lenient attitude toward digital assets.
