Tokenize Xchange is getting kicked out of Singapore after the Monetary Authority of Singapore rejected its digital payment token license application. The crypto exchange raised $11.5 million to expand locally, planned to grow from 15 to 100 employees, and now has to fire everyone by September. Users can only withdraw funds or transfer crypto elsewhere—no more trading. The company is scrambling to relocate to Malaysia while Singapore’s regulatory crackdown claims another victim.
Singapore’s crypto crackdown just claimed another victim. Tokenize Xchange is shutting down its local operations after regulators refused to grant the company a digital payment token license.
Singapore’s regulatory hammer strikes again, forcing another crypto exchange to abandon its local dreams and flee to friendlier jurisdictions.
The Monetary Authority of Singapore delivered the bad news in early June, giving crypto firms until June 30 to get licensed or get out. Tokenize didn’t make the cut. Now they’ve got until September 30 to pack up and leave.
This hits particularly hard considering Tokenize raised $11.5 million just over a year ago, specifically to expand in Singapore. They had grand plans to grow their local team from 15 to 100 employees. Instead, all 15 workers are getting pink slips by the end of September.
MAS hasn’t bothered explaining why they rejected Tokenize’s application. The regulator’s been on a mission to clean house, targeting unlicensed crypto operators across the board. Tokenize was operating under a temporary exemption while waiting for full approval. That grace period just expired.
For Singapore users, the party’s over. No more trading, no more deposits. The platform locked trading activities immediately after the announcement. Users can only withdraw funds or transfer their crypto elsewhere, based on holdings from a midnight snapshot taken July 18.
Cash balances can be withdrawn in Singapore dollars. Crypto holdings can be transferred to other exchanges. That’s it. The company says user wallets will still display portfolio values during this changeover period, which is something, at least. Withdrawal tiers will be determined based on the Singapore dollar value of users’ cryptocurrency portfolios.
Tokenize isn’t going down without a fight, though. They’re relocating to Labuan, Malaysia, acquiring a company with an existing digital financial services license. The deal should close right as Singapore operations shut down.
They’re also eyeing Abu Dhabi Global Market for future expansion. The CEO is spinning this as an opportunity to “fortify international operations.” Classic corporate speak for making the best of a bad situation. Their other markets in Malaysia and Vietnam continue operating normally. The exchange has been serving both individual and institutional clients since its founding in 2017.
This regulatory rejection effectively torched millions in expansion investments and regional ambitions. Singapore’s crypto winter just got colder, and Tokenize learned the hard way that temporary exemptions don’t guarantee permanent residence.
