Singapore / Labuan, Malaysia – Crypto exchange Tokenize Xchange announced on July 20 that it will cease 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. This move comes just over a year after the exchange raised $11.5 million and expressed intentions to expand its local team, as reported by The Straits Times. Tokenize had been operating under a temporary exemption while its regulatory approval was pending.
In response to the license snub, Tokenize Xchange plans to relocate its operations to Labuan, a Malaysian federal territory. The company is in the process of acquiring a licensed entity regulated by the Labuan Financial Services Authority (LFSA), with the acquisition expected to finalize by the end of September. Furthermore, Tokenize intends to pursue a license from the Abu Dhabi Global Market (ADGM) as part of its broader strategy for international expansion.
The transition will unfortunately impact its Singapore-based workforce, with all 15 employees reportedly served notice and expected to depart by the end of September. Tokenize has not publicly disclosed the specific reasons behind MAS' decision to deny its license.Singapore-based users of Tokenize Xchange are now unable to trade cryptocurrencies on the platform. They are instead directed to withdraw their Singapore dollar cash balances or transfer their crypto holdings to other exchanges, based on a portfolio snapshot taken at midnight on July 18.To facilitate a smooth wind-down, Tokenize has implemented a tiered withdrawal system:
All users, regardless of their initial withdrawal window, will have until the final September 30 deadline to move their assets.
Tokenize's departure aligns with a broader regulatory push by MAS. On June 6, MAS issued a directive requiring all digital token service providers, including those serving overseas clients, to be licensed by June 30 or cease operations. This regulatory clampdown has triggered a wave of exits, with numerous unlicensed exchanges leaving Singapore. Reports indicate that over 500 fintech employees are now considering relocation to more crypto-friendly jurisdictions such as the UAE or Hong Kong.
Tokenize has stated its commitment to supporting its affected staff in finding new employment. The company remains focused on securing approval from Abu Dhabi to expand its global presence, while Singapore users are strongly advised to complete their asset transfers promptly to avoid any disruption.
July 2025, Cryptoniteuae