Tokenize Xchange Shuts Singapore Operations After MAS License Rejection

Crypto exchange Tokenize Xchange has announced the shutdown of its operations in Singapore by September 30, following the Monetary Authority of Singapore’s (MAS) decision to reject its application for a digital payment token license. The announcement was made on July 20, just over a year after the exchange raised $11.5 million and revealed plans to expand its local team. The firm had been operating under a temporary exemption while awaiting regulatory approval.

Tokenize Xchange now plans to relocate its operations to Labuan, a Malaysian federal territory, where it is acquiring a licensed entity regulated by the Labuan Financial Services Authority. The acquisition is expected to close by the end of September. Additionally, the company intends to seek a license from Abu Dhabi Global Market as part of its efforts to expand internationally. All 15 Singapore-based employees have been served notice and will leave by the end of September. The company did not disclose the specific reasons behind MAS’ decision to withhold the license.

Singapore users can no longer trade cryptocurrencies on the platform. Instead, they may withdraw their Singapore dollar cash balances or transfer crypto holdings to other exchanges, based on a portfolio snapshot taken at midnight on July 18. The company has clarified how tiers are assigned, with the portfolio value shown in each user’s wallet determining their withdrawal tier. Users with portfolios below S$10,000 have been able to withdraw cash and transfer their crypto assets since July 17. Those holding between S$10,000 and S$99,999 can start from August 1, while users with portfolios exceeding S$100,000 must wait until September 1 to begin withdrawals. Users who miss the initial window for lower-tier withdrawals can still act and have until the final September 30 deadline to move their assets.

The company’s exit follows MAS’ June 6 directive requiring all digital token service providers targeting overseas clients to be licensed by June 30 or cease operations. The regulatory clampdown has triggered a wave of departures, with many unlicensed exchanges exiting Singapore. More than 500 fintech employees are reportedly planning to relocate to friendlier jurisdictions. Tokenize says it will support its staff in finding new employment and remains focused on securing approval from Abu Dhabi to grow its global presence. Singapore users are advised to complete their asset transfers promptly to avoid disruption.