Hodlnaut, a Singapore-based crypto forex lender and borrower, has suspended withdrawals, swaps and deposits, the corporate stated on Monday, the newest signal of stress within the cryptocurrency business.
The crypto lender additionally stated it will withdraw its utility for a licence from the Monetary Authority of Singapore (MAS) to offer digital token fee companies, for which it obtained in precept approval in March. An MAS spokesperson stated it had rescinded the approval following the request.
Hodlnaut stated the transfer was “due to recent market conditions” and was “to focus on stabilising our liquidity and preserving assets”. The firm is the newest 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 embrace U.S. 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 shoppers, in response to courtroom filings.
Singapore, a significant centre for crypto and blockchain in Asia, has seen a number of crypto firms run into difficulties in current months.
Vauld, 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 change, 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,” stated an MAS spokesperson.
They stated this was a motive why “MAS has been continually reminding the general public that dealing in cryptocurrency is highly hazardous,” and added spillover to Singapore’s home monetary system from the current turmoil within the cryptocurrency market has been “very limited”
Hodlnaut didn’t reply to a request for remark.
