Crypto Exchange Tokenize Xchange To Exit Singapore After Failing To Secure MAS Licence
Singapore-based cryptocurrency platform Tokenize Xchange will shut down its local operations by 30 September 2025, after its application for a digital payment token licence was rejected by the Monetary Authority of Singapore (MAS).
The firm had been operating under an exemption while waiting for regulatory approval.
Relocation Plans Set For Malaysia And UAE
In response to the regulatory setback, Tokenize is relocating its operations to Labuan, a federal territory in Malaysia.
The company is in the final stages of acquiring a licensed entity regulated by the Labuan Financial Services Authority.
It also plans to expand further by seeking regulatory approval from the Abu Dhabi Global Market (ADGM), an international financial centre in the UAE.
Chief executive and founder Hong Qi Yu commented:
“While we regret this outcome in Singapore, we view this development as an opportunity to fortify our international operations.”
Hong Qi Yu, founder and CEO of Tokenize Xchange and Tokenize Malaysia
He said the regulatory structure in Labuan provides “greater flexibility, tax efficiency and access to international markets”.
Operations Wind Down As 15 Local Staff Face Job Losses
All 15 Singapore-based employees will be laid off by 30 September, although Tokenize stated some may be offered overseas roles.
In the meantime, the company will support staff in pursuing new employment opportunities.
Tokenize’s departure follows the MAS’s updated directive issued on 6 June 2025, requiring all digital token service providers targeting overseas users to be licensed locally by 30 June or halt operations.
The ruling has triggered a wider migration of crypto firms out of Singapore, with more than 500 professionals expected to relocate to regions like the UAE and Hong Kong, which are considered more crypto-friendly.
Withdrawals Now In Progress Under Phased Schedule
As part of its exit process, Tokenize has rolled out a withdrawal schedule for its Singapore customers.
Users can no longer buy or sell cryptocurrencies on the platform but are allowed to withdraw cash or transfer crypto assets to other exchanges.
The withdrawal schedule is based on the value of users' portfolios, as recorded at midnight on 18 July:
Portfolios under S$10,000 can withdraw until 31 July.
Portfolios between S$10,000 and S$99,999 can do so from 1 to 31 August.
Portfolios above S$100,000 will be processed between 1 and 30 September.
Those who miss their allocated period can still complete withdrawals by 30 September, the final day of operations.
From Local Ambitions To Regional Pivot
Tokenize’s exit is a stark turn from its earlier ambitions.
Just over a year ago, the company had raised US$11.5 million (S$14.8 million) in funding and announced plans to scale its Singapore headcount to 100.
It had aimed to strengthen its presence across Southeast Asia and adapt to the region’s growing regulatory demands.
Founded in 2017, Tokenize Xchange had grown to serve clients across Singapore, Malaysia, and Vietnam.
In April 2020, it became one of the first three operators to receive full approval from Malaysia’s Securities Commission and is currently the second-largest digital asset exchange in Malaysia.
The platform supported trading in over 80 cryptocurrencies, including Bitcoin and Ethereum.
A Global Strategy Fueled By Regulation Gaps
The company is now redirecting its growth strategy toward more accommodating jurisdictions.
In addition to its pending Labuan licence, Tokenize is pursuing authorisation in Abu Dhabi and recently launched its own blockchain, Titan Chain, in April 2024.
According to Hong, these moves highlight its continued focus on compliance, innovation and serving international clients:
“Our Labuan license and forthcoming ADGM license underline our unwavering commitment to regulatory compliance, security, and providing a trusted platform for our global users.”
Tighter Rules, Bigger Shifts Ahead?
Singapore’s tougher stance reflects a broader trend of maturing regulation in the crypto space.
But the speed at which companies like Tokenize are uprooting and redirecting their operations reveals something else: the competition between financial centres is accelerating.
While Singapore is doubling down on compliance, others are racing to welcome digital asset players.
In a space that thrives on flexibility, how long regulators can hold the reins without losing talent and innovation remains a question worth watching.
XingChi
