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Singapore-based cryptocurrency provider and borrower Hodlnaut has suspended withdrawals, swaps and deposits, the company said on Monday, the latest sign of stress in the cryptocurrency industry.
The crypto lender also said it will withdraw its application for a license from the Monetary Authority of Singapore (MAS) to provide digital token payment services, which it received in-principle approval in March. A MAS spokesman said it had withdrawn the approval based on the request.
Hodlnaut said the move was “due to recent market conditions” and “was to focus on stabilizing our liquidity and preserving assets”. The company is the latest in a string of crypto players around the world to run into trouble following a sharp selloff in markets that began in May with the collapse of two paired tokens, Luna and TerraUSD.
Other notable failures include US crypto lender Celsius and Singaporean fund Three Arrows Capital, both of which filed for bankruptcy last month.
Hodlnaut was named one of Celsius’ institutional clients, according to court filings.
Singapore, a major hub for crypto and blockchain in Asia, has seen issues with several crypto companies in recent months.
Vauld, a Singapore-based cryptocurrency lending and trading platform, suspended withdrawals in early July, and Zipmex, a Southeast Asian-focused crypto exchange, suspended withdrawals later that month, though it has since resumed them for some products.
“Digital payment token service providers licensed by the MAS under the (Payment Services) Act are subject to regulation of money laundering and terrorist financing risks as well as technological risks. They are not subject to risk-based capital or liquidity requirements, nor are they required to protect customer money or digital tokens from the risk of insolvency,” a MAS spokesperson said.
They said this is why “MAS continues to remind the general public that cryptocurrency trading is highly dangerous”, adding that the spillover to Singapore’s domestic financial system from the recent cryptocurrency market turbulence was “very limited”.
Hodlnaut did not respond to a request for comment.