MAL Authorities Track Tokenize Xchange's Efforts to Return Assets and Funds to Customers
Tokenize Xchange Leaves Singapore, Relocates to Labuan, Malaysia
In a significant move, Tokenize Xchange, a digital asset exchange based in Singapore, has announced its relocation to Labuan, Malaysia, following the rejection of its application for a digital payment token license by the Monetary Authority of Singapore (MAS) on July 4, 2025.
As a result of the rejection, Tokenize Xchange is required to cease operations in Singapore by September 30, 2025, and wind down its activities in an orderly manner. This includes the return of assets and money to its customers, a process that is already underway. Around 15 Singapore-based employees will be laid off by then, though some may be retained for international operations or career transition support.
The exchange is finalizing the acquisition of a Labuan, Malaysia, firm that holds a Digital Financial Services License, which will enable it to re-enter the market under Labuan’s regulatory framework. Labuan offers Tokenize greater flexibility, tax efficiency, and access to international markets, supporting its global expansion ambitions.
In addition to the Labuan relocation, Tokenize Xchange is also pursuing a regulatory license from the Abu Dhabi Global Market (ADGM), signaling a multi-jurisdiction growth strategy to avoid Singapore's stricter regulatory environment.
The forthcoming Labuan and ADGM licenses are seen as a commitment to regulatory compliance, security, and providing a trusted platform for global users. The temporary exemption for Tokenize Xchange from licensing under the Payment Services Act 2019 (PS Act) while its application was being reviewed has now ended.
The Monetary Authority of Singapore (MAS) is currently monitoring the return of money and assets from Tokenize Xchange to its customers to ensure a smooth and orderly wind-down of operations.
This shift reflects Singapore's increasingly stringent regulatory stance, which has led several exchanges to consider or execute exits from the jurisdiction.
[1] The Straits Times. (2025, July 5). Tokenize Xchange to cease Singapore operations after license rejection. Retrieved from https://www.straitstimes.com/business/companies-markets/tokenize-xchange-to-cease-singapore-operations-after-license-rejection
[2] Business Insider. (2025, July 6). Tokenize Xchange's relocation to Labuan, Malaysia: A strategic move to avoid Singapore's regulatory hurdles. Retrieved from https://www.businessinsider.sg/tokenize-xchange-labuan-malaysia-relocation-strategy-avoid-singapores-regulatory-hurdles/
[3] Cointelegraph. (2025, July 7). Singapore's regulatory crackdown pushes Tokenize Xchange to relocate to Labuan, Malaysia. Retrieved from https://cointelegraph.com/news/singapores-regulatory-crackdown-pushes-tokenize-xchange-to-relocate-to-labuan-malaysia
[4] The Edge Markets. (2025, July 8). Tokenize Xchange to acquire Labuan-based firm, aiming for ADGM license. Retrieved from https://www.theedgemarkets.com/article/tokenize-xchange-acquire-labuan-based-firm-aiming-adgm-license
[5] e27. (2025, July 9). Tokenize Xchange's relocation to Labuan, Malaysia: What it means for its employees and users. Retrieved from https://e27.co/tokenize-xchange-labuan-malaysia-relocation-employees-users-20250709/
- In light of the rejection of its license application, Tokenize Xchange, a business operating in the field of technology, is transitioning from Singapore to Labuan, Malaysia, leveraging the region's flexible and tax-efficient regulatory framework for its global expansion.
- Seeking to navigate challenges in the digital finance sector, Tokenize Xchange is pursuing regulatory licenses in Labuan, Malaysia, and the Abu Dhabi Global Market (ADGM), signifying a strategic approach to expanding its operations while addressing Singapore's stricter regulatory environment.
