Singapore-based crypto lender Hodlnaut suspends withdrawals

Representations of the virtual currencies Ripple, Bitcoin, Etherum and Litecoin are seen on a PC motherboard in this illustrative image, February 14, 2018. REUTERS/Dado Ruvic/Illustration/File Photo

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HONG KONG, Aug 8 (Reuters) – Hodlnaut, a Singapore-based cryptocurrency lender and borrower, has suspended withdrawals, exchanges and deposits, the company said on Monday, in the latest sign of tension in the crypto industry. -change.

The crypto lender also said it would withdraw its application for a license with the Monetary Authority of Singapore (MAS) to provide digital token payment services, for which it received approval in principle in March.

A MAS spokesperson said it rescinded the endorsement following the request.

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Hodlnaut said the move was “due to recent market conditions” and should “focus on stabilizing our liquidity and preserving assets.”

The company is the latest in a series of crypto players around the world to struggle following a sharp sell-off in the markets that began in May with the collapse of two paired tokens, Luna and TerraUSD. . Read more

Other high-profile failures include US crypto lender Celsius and Singaporean fund Three Arrows Capital, both of which filed for bankruptcy last month. Read more

Hodlnaut was named as one of Celsius’ institutional clients, according to court documents.

Singapore, a major crypto and blockchain hub in Asia, has seen several crypto companies struggle in recent months. Read more

Vauld, a Singapore-based crypto lending and exchange platform, suspended withdrawals in early July, and later that month Zipmex, a Southeast Asia-focused crypto exchange, suspended withdrawals. suspended withdrawals, but has since resumed them for some products. Read more

“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. are not subject to risk-based capital or liquidity requirements, nor are they required to protect customer money or digital tokens against the risk of insolvency,” a spokesperson said. MAS.

They said that was why “MAS has continually reminded the general public that cryptocurrency trading is very dangerous”, and that the fallout on Singapore’s domestic financial system from the recent turmoil in the cryptocurrency market have been “very limited”.

Hodlnaut did not respond to a request for comment.

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Reporting by Alun John in Hong Kong, Chen Lin in Singapore and Elizabeth Howcroft in London; Editing by Toby Chopra and Louise Heavens

Our standards: The Thomson Reuters Trust Principles.

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