Tokenize Hits Regulatory Wall: Crypto Exchange Exits Singapore Amid Licensing Hurdles

Another domino falls in Singapore's crypto crackdown.

Tokenize—once bullish on Singapore's digital asset ambitions—just pulled its operations from the city-state. Blame it on the Monetary Authority of Singapore's (MAS) iron-fisted licensing regime. No surprises here—regulators worldwide still treat crypto like a rebellious teen with a maxed-out credit card.

Behind the exit: A classic case of 'adapt or die.' While Tokenize didn't disclose specifics, insiders point to MAS's notorious 18-month approval backlog. The exchange now joins a growing graveyard of Asia-Pacific crypto ventures that couldn't outlast the paperwork.

Silver lining? Tokenize's retreat mirrors Binance's 2021 pivot—a tactical withdrawal, not a surrender. Watch for redeployment to friendlier jurisdictions (hello, Dubai). Meanwhile, Singapore's 'blockchain hub' dreams keep colliding with its risk-averse bureaucracy. Finance never changes—only the buzzwords do.

Tokenize to Relocate Operations to Malaysia After Licence Snub

Tokenize now plans to shift 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. The company also intends to seek a licence from Abu Dhabi Global Market as part of its efforts to expand internationally.

All 15 Singapore-based employees have reportedly 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 licence.

Crypto exchange Tokenize Xchange to shut down Singapore operations https://t.co/VLDt5ggrK1

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.

Tiered Withdrawals Underway as Tokenize Winds Down

Additionally, Tokenize clarified how tiers are assigned. The portfolio value shown in each user’s wallet will determine their withdrawal tier.

Users with portfolios below S$10,000 have been able to withdraw cash and transfer their crypto assets since July 17. Meanwhile, those holding between S$10,000 and S$99,999 can start from August 1. Finally, users with portfolios exceeding S$100,000 must wait until Sept. 1 to begin withdrawals.

Users who miss the initial window for lower-tier withdrawals can still act. They will have until the final Sept. 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. As a result, many unlicensed exchanges are exiting Singapore. More than 500 fintech employees are reportedly planning to relocate to friendlier jurisdictions such as the UAE or Hong Kong.

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, meanwhile, are advised to complete their asset transfers promptly to avoid disruption.