Hodlnaut, a Singapore-based crypto forex lender and borrower, has suspended withdrawals, swaps and deposits, the corporate mentioned on Monday, the most recent signal of stress within the cryptocurrency trade.
The crypto lender additionally mentioned it might withdraw its utility for a license from the Monetary Authority of Singapore (MAS) to offer digital token cost providers, for which it acquired in precept approval in March. An MAS spokesperson mentioned it had rescinded the approval following the request.
Hodlnaut mentioned the transfer was “due to recent market conditions” and was “to focus on stabilizing our liquidity and preserving assets”. The firm is the most recent in a string of crypto gamers globally to run into difficulties following a pointy dump in markets that began in May with the collapse of two paired tokens, Luna and TerraUSD.
Other excessive profile failures embody US crypto lender Celsius, and Singapore-based fund Three Arrows Capital, each of which filed for chapter final month.
Hodlnaut was named as certainly one of Celsius’ institutional purchasers, in accordance with court docket filings.
Singapore, a serious heart for crypto and blockchain in Asia, has seen a number of crypto firms run into difficulties in latest months.
Vault, a Singapore-based crypto lending and buying and selling platform, suspended withdrawals in early July, and later that month, Zipmex, a Southeast Asia-focused crypto alternate, suspended withdrawals, although has since resumed them for some merchandise.
“Digital payment token service providers licensed by MAS under the (Payment Services) Act are regulated for money laundering and terrorism financing risks as well as technology risks. They are not subject to risk-based capital or liquidity requirements, nor are they required to safeguard customer monies or digital tokens from insolvency risk,” mentioned an MAS spokesperson.
They mentioned this was a purpose why “MAS has been constantly reminding the general public that dealing in cryptocurrency is highly hazardous,” and added spillover to Singapore’s home monetary system from the latest turmoil within the cryptocurrency market has been “very limited”
Hodlnaut didn’t reply to a request for remark.
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With inputs from TheIndianEXPRESS
