MAS Media Release on Tokenize Exchange

This Opinion post first appeared in my blog here: https://pwlcm.wordpress.com/2025/08/01/mas-media-release-on-tokenize-exchange/

Disclaimer: This post is just for educational sharing purposes. Please do your own due diligence on any products mentioned in this post.

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Today (1 August 2025) MAS published a media release titled Investigation Into Tokenize Xchange Operated By AmazingTech Pte Ltd on their website.

Key summary of the media release:

1. The media release is a joint statement from Singapore Police Force (SPF) and Monetary Authority of Singapore (MAS) as it bears the logos of both entities.
2. Tokenize Exchange was operating under exemption by AmazingTech Pte Ltd (ATPL) since the Payment Services Act 2019 (PS Act) was introduced after ATPL started operations, so that their services are not disrupted pending licensing.
3. The exemption ended on 4 July 2025, when MAS rejected ATPL's licence application.
4. In mid-July 2025, some customers complained to MAS against ATPL for delays in processing withdrawals of monies and crypto tokens. MAS then asked ATPL to remedy these concerns.
5. The most worrisome point in the media release is that MAS found out that ATPL didn't have sufficient assets to meet customers' claims, and that they might not have segregated customers' assets from ATPL's assets.
6. MAS then referred the case to SPF's Commercial Affairs Department (CAD) for investigations.
7. On 31 July 2025, Hong Qi Yu, CEO and founder of Tokenize Exchange, has been charged in court with the offence of fraudulent trading.

From my perspective, point 5 in this media release is the most alarming. It means that Tokenize Exchange might not have 1-for-1 backing of customers' crypto assets, and whatever crypto assets they partially held for customers might be commingled with their own assets. This really put the current withdrawal exercise in question.

The saving grace with the withdrawal exercise is that it was scheduled based on the portfolio value. The small portfolio starts the withdrawal first in July 2025, followed by the midsize portfolio in August 2025, and lastly by the large portfolio in September 2025. This arrangement means that the earlier groups would have better chance of getting their assets.

I can only hope that Tokenize Exchange is genuine in returning customers' assets, and that they have enough assets to cover a large portion of customers' withdrawals, if not fully covered.

Keeping my fingers crossed!