Background

On 1 August 2025, MAS announced an investigation by the Singapore Police Force’s Commercial Affairs Department (CAD) into AmazingTech Pte Ltd (“ATPL”), the operator of Tokenize Xchange.

This announcement follows MAS’s recent rejection of ATPL’s Major Payment Institution (MPI) license application, Prior to the rejection, ATPL was operating under a temporary exemption but had its exemption terminated on 4 July 2025 and was instructed by MAS to immediately cease all regulated activities and to return customer assets in an orderly manner.

Key Observations

• Withdrawal Issues: In mid-July 2025, MAS received complaints regarding delays in processing customer withdrawals of both money and digital tokens.
• Asset and Segregation Concerns: ATPL appears to have insufficient assets to cover customer claims, with indications that customer assets were not segregated from company assets, and inconsistencies noted in representations made during the licensing process.
• Regulatory & Enforcement Action: The matter has been referred to the CAD for investigation, including potential criminal conduct.

MAS emphasised:

• Entities operating under exemption or transitional arrangements must cease regulated activities and exit in an orderly manner if their license application is unsuccessful.
• Customer assets and funds must be fully returned, with strict segregation from the firm’s own assets at all times.
• Entities must provide accurate and complete information to MAS at all times and maintain full compliance with applicable regulatory requirements.
• Failures to meet these obligations may result in supervisory or enforcement actions, including criminal prosecution where misconduct is suspected.

What Next for PSA Licensees?

• Licensing: Ensure that you have the proper license required by MAS before conducting any regulated activities.
• Segregation of Customer’s Monies and Assets: Ensure separate accounts for customers’ monies and FIs’ monies.
• Liquidity Risk Management: Maintain relevant liquidity ratios and buffers in case of unexpected withdrawals. Institute and test liquidity risk management plans to ensure accountability to clients.

How Can We Help?

Capital Governance assists FIs by:

• Advising on regulatory licensing requirements under the Payment Services Act;
• Conducting compliance reviews and gap analyses for AML/CFT and consumer protection controls;
• Enhancing governance and risk management frameworks to meet MAS expectations.
• Reviewing segregation of customers’ assets and advising on liquidity issues.

And more…

Contact Us today to discuss how we can provide the risk and compliance advisory solutions for you. Find out more here.