Singapore-based crypto currency lender and borrower Hodlnot has suspended withdrawals, swaps and deposits, the company said on Monday, the latest sign of tension in the cryptocurrency industry.
The crypto lender also said that it will withdraw its application for a license from the Monetary Authority of Singapore (MAS) to provide digital token payment services, for which it received in-principle approval in March.
An MAS spokesperson said it had revoked the approval following the request.
Hodlnot said the move was “due to recent market conditions” and to “stabilize our liquidity and focus on preserving the asset”.
The company is the latest in a string of crypto players globally following a sharp sell-off in the markets that began with the collapse of two paired tokens, Luna and TeraUSD, in May.
Other high-profile failures include US crypto lender Celsius and Singapore-based fund Three Arrows Capital, both of which filed for bankruptcy last month.
According to the court filing, Hodlnot was named as one of Celsius’ institutional clients.
Singapore, a major center for crypto and blockchain in Asia, has seen many crypto companies run into difficulties in recent months.
Singapore-based crypto lending and trading platform Wold suspended withdrawals in early July, and later that month, Zipmex, a Southeast Asia-focused crypto exchange, suspended withdrawals, though they were reintroduced for some products. started.
“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 protect customers’ money or digital tokens from the risk of bankruptcy,” said an MAS spokesperson.
He added that this is why “MAS is constantly reminding the general public that dealing in cryptocurrency is extremely dangerous,” and adding that the spillover to Singapore’s domestic financial system from the recent turmoil in the cryptocurrency market is “very limited”.
Hodlnot did not respond to a request for comment.
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