Tokenize Xchange Shuts Down Singapore Operations After License Rejection

Cryptocurrency exchange Tokenize Xchange will cease operations in Singapore by September 30, becoming the latest casualty of the Monetary Authority of Singapore's (MAS) tightening regulatory framework after being denied a license to provide digital payment token services.

The Singapore-headquartered company announced the shutdown on July 20, just over a year after raising $11.5 million in funding and announcing ambitious hiring plans, according to The Straits Times. The exchange had been operating under a regulatory exemption before MAS declined to grant it a full license.

The company had previously served retail and institutional investors across Singapore, Malaysia, and Vietnam.

The writing was on the wall, with Tokenize's social media presence and communications going dark since July 7, with the company's X, Telegram, and Medium pages showing no updates. Reports emerged last week from users experiencing problems with withdrawals, raising questions about the platform's operational stability during the wind-down period.

Chief executive Hong Qi Yu said Tokenize will relocate its operations to Labuan, a federal territory in Malaysia, where it is acquiring a company that holds a digital financial services license from the Labuan Financial Services Authority. The deal is expected to close by the September 30 deadline.

Mass Layoffs and Customer Exodus

All 15 of Tokenize's Singapore employees have been given notice and will leave the company by September 30. The exchange has also ceased new trading activities for Singapore customers, who can now only transfer their cryptocurrency holdings to other exchanges or withdraw cash based on their portfolio values.

The company has implemented a phased withdrawal schedule based on portfolio size: users with holdings below $10,000 have been able to withdraw since July 17, those with $10,000-$99,999 can withdraw from August 1, and customers with $100,000 or more can begin withdrawals from September 1. All withdrawals and transfers must be completed by the shutdown date.

The Straits Times reported that Tokenize's exit is part of a broader exodus of unlicensed cryptocurrency exchanges from Singapore following MAS's June 6 announcement that digital token service providers targeting overseas customers must obtain licenses by June 30 or cease operations.

The regulatory crackdown has triggered significant job losses across Singapore's fintech sector, with more than 500 staff, from management to junior levels, expected to relocate to jurisdictions like the UAE or Hong Kong, where regulators are perceived to take a more accommodating stance toward digital assets.

Seeking Greener Regulatory Pastures

"Labuan will allow Tokenize to operate under a recognised regulatory framework tailored for cross-border digital asset services," Hong told The Straits Times, adding that the jurisdiction "offers greater flexibility, tax efficiency and access to international markets, supporting the platform's global growth ambitions," he said.

The company is also pursuing regulatory approval from the Abu Dhabi Global Market, positioning itself to serve customers across multiple jurisdictions while avoiding Singapore's increasingly restrictive environment.

The shutdown reflects Singapore's evolving approach to cryptocurrency regulation, as MAS has moved from a relatively permissive stance to implementing stricter oversight requirements. The regulator's decision to require licensing for all digital asset service providers, regardless of their target market, has forced many smaller exchanges to either meet heightened compliance standards or exit the market entirely.

The broader implications extend beyond individual company exits, as Singapore risks losing its position as a regional fintech hub if the regulatory environment continues to drive away digital asset businesses. The migration of hundreds of industry professionals to competing jurisdictions could have lasting effects on the country's cryptocurrency ecosystem and innovation capacity.