Representations of the virtual currencies Ripple, Bitcoin, Etherum and Litecoin are seen on a PC motherboard in this illustrative image dated February 14, 2018. Portal/Dado Ruvic/Illustration/File Photo
HONG KONG, Aug 8 (Portal) – Hodlnaut, a Singapore-based cryptocurrency lender and borrower, has suspended withdrawals, swaps and deposits, the company said on Monday, the latest sign of stress in the cryptocurrency industry.
The crypto lender also announced that it would withdraw its application for a license from the Monetary Authority of Singapore (MAS) to provide digital token payment services, for which it received approval in principle in March.
A MAS spokesman said it revoked the permit after the request.
Hodlnaut said the move was “due to recent market conditions” and “to focus on stabilizing our liquidity and preserving assets.”
The company is the latest in a string of global crypto players to find themselves in trouble following a sharp sell-off in markets that began in May with the collapse of two paired tokens, Luna and TerraUSD. Continue reading
Other high-profile failures include US crypto lender Celsius and Singapore-based fund Three Arrows Capital, both of which filed for bankruptcy last month. Continue reading
Hodlnaut was named as one of Celsius’s institutional clients, according to court filings.
In Singapore, a major hub for crypto and blockchain in Asia, several crypto companies have run into trouble in recent months. Continue reading
Vauld, a Singapore-based crypto lending and trading platform, suspended withdrawals in early July, and later this month Zipmex, a Southeast Asia-focused crypto exchange, suspended withdrawals but has since resumed them for some products. Continue reading
“Digital payment token service providers licensed by MAS under the (Payment Services) Act are regulated for money laundering and terrorist 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 funds or digital tokens from insolvency risk,” said a MAS spokesman.
They said this is one reason why “MAS has constantly reminded the general public that cryptocurrency trading is highly dangerous” and that the additional impact of the recent cryptocurrency market turmoil on Singapore’s domestic financial system has been “very limited”.
Hodlnaut did not respond to a request for comment.
Reporting by Alun John in Hong Kong, Chen Lin in Singapore and Elizabeth Howcroft in London; Arrangement by Toby Chopra and Louise Heavens
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