Tokenize to Exit Singapore as MAS Denies Digital Payment Token Licence Request

Highlights:

• The exchange will shut its operations after failing to secure a license from MAS.
• Users must follow the withdrawal schedule based on portfolio size, with the final deadline set for September.
• Tokenize plans to move operations to Labuan before the end of September.

Tokenize Xchange will shut down its operations in Singapore by September 30 after the Monetary Authority of Singapore declined its license application. The company had been operating under a temporary exemption in Singapore while it awaited a decision from MAS. After the rejection, Tokenize confirmed that it would end all local services and begin a withdrawal process for its users.

Tokenize Xchange is exiting Singapore by September 30, 2025, after MAS rejected its digital payment token licence. The exchange plans to relocate to Labuan, Malaysia, and pursue licensing in Abu Dhabi, supporting Singapore employees and users with phased withdrawals. This move… pic.twitter.com/xgN7MIqaqS

— Fama Crypto (@Famacrypt) July 21, 2025

The exchange made the announcement just over a year after it secured $11.5 million in funding. At that time, it had announced plans to grow its Singapore team and expand operations in the region. However, the latest decision has brought those expansion plans to a halt.

Singapore users can no longer carry out any trading on the platform. The digital trading platform has instructed its customers to withdraw their Singapore dollar balances or transfer their crypto assets to other exchanges that are licensed. The platform will process these requests based on a portfolio snapshot taken at midnight on July 18. The company also confirmed that all of its employees who are based in Singapore will leave by the end of September.

Platform to Shift Operations to Labuan

Tokenize has announced that it will move its core operations to Labuan, a federal territory in Malaysia. The firm is purchasing a licensed entity supervised by the Financial Services Authority of the territory. It is planning to make this acquisition by the close of September. This will enable Tokenize to move forward with its services under new management.

Alongside its relocation to Malaysia, the firm plans to apply for a license in Abu Dhabi. Tokenize sees this as a step toward expanding its presence in the Middle East. The company also aims to rebuild its operations beyond Singapore by entering new markets with clearer compliance paths.

To support its users during the transition, Tokenize introduced a tiered withdrawal system. Users with lower portfolio values than S$10,000 can already withdraw funds and transfer their crypto since July 17. Users with balances between S$10,000 and 99,999 will start withdrawals on Aug. 1. Those with greater than S$100,000 will have to wait until September 1 to begin their process.

Tokenize verified that the tier depends on the value of the user in their wallet at the time of the snapshot. Users who miss their scheduled windows can still withdraw until the final deadline of September 30. The company urged users to follow the schedule to avoid issues or delays.

Singapore Clampdown Triggers Tokenize to Exit Singapore

The move to shut down operations comes after a recent directive from the Monetary Authority of Singapore. The order, issued on June 6, required all digital token firms serving foreign users to hold valid licenses by June 30. Any firm that failed to comply with this rule had to stop operating in Singapore.

Several exchanges without licenses have now exited the country. Reports also indicate that more than 500 fintech professionals plan to relocate to countries with fewer restrictions, such as the United Arab Emirates or Hong Kong. Meanwhile, BitGo recently launched a subsidiary in Singapore after receiving a Payment Institution License from the Monetary Authority of Singapore. Tokenize stated that it will support its laid-off workers and assist them with future employment options. The company also said it would focus on securing new licenses and growing its services in new locations.