Crypto platform Hodlnaut halts services with immediate effect; to withdraw MAS licence application
Jude Chan
HODLNAUT will be halting withdrawals, token swaps and deposits with immediate effect, the crypto platform said in a statement on Monday (Aug 8).
The company said this “difficult decision” was so it can focus on stabilising its liquidity and preserving assets.
It added that it has informed the Monetary Authority of Singapore (MAS) that it intends to withdraw its application for a Major Payment Institution licence.
MAS in March had given in-principle approval to Hodlnaut for the licence, which regulates the platform’s token swap feature.
Token swaps allow users to exchange cryptocurrencies, such as from Bitcoin to Ethereum.
Hodlnaut said it will no longer provide such regulated digital payment token (DPT) services, and will also cease all borrowing and lending services.
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The announcement comes amid a recent collapse of cryptocurrency markets.
Defi Payments, a unit of crypto lender Vauld, was earlier this month granted a 3-month extension on its moratorium to Nov 7 as it mulls crypto lender Nexo’s buyout offer.
The crypto platform, which had applied for a Singapore digital payment token licence, owes some US$402 million to 147,000 creditors from across the globe.
A number of crypto platforms have filed for bankruptcy protection in recent months.
In July, crypto exchange Zipmex filed for bankruptcy protection in Singapore.
Others, such as crypto lender Voyager Digital, have applied for Chapter 11 bankruptcy in the US, which pauses all civil litigation and allows for companies to operate and prepare a turnaround plan.
Another crypto lender, Celsius, filed for bankruptcy after halting withdrawals and transfers between accounts in June.
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