Cryptocurrency Lender Hodlnaut Has Halted Withdrawals in Singapore

08/09/2022By: C, Fiona

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Singapore-based cryptocurrency lender and borrower Hodlnaut announced on Monday (Aug. 8) that it had temporarily halted withdrawals, swaps, and deposits in light of recent market turmoil.

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After receiving preliminary authorisation from Singapore’s Monetary Authority (MAS) to provide digital token payment services in March, the crypto lender has decided to withdraw its application.

As a result of recent market conditions, Hodlnaut explained, the company has decided to take a more cautious approach to its liquidity and asset preservation.

The company is the latest in a long line of crypto players around the world that have had financial troubles following the May collapse of Luna and TerraUSD, two paired coins.

Celsius, a US-based crypto lender, and Three Arrows Capital, a Singapore-based company, both filed for bankruptcy last month.

According to court filings, Celsius named Hodlnaut as one of its institutional clients.

Several crypto companies have encountered issues recently in Singapore, a significant Asian hub for crypto and blockchain.

Crypto lending and trading platform Vauld banned withdrawals in early July while Southeast Asia-focused crypto exchange Zipmex did the same later in the month but has subsequently reopened partial withdrawals for select goods notwithstanding the latter’s suspension.

Requests for comment from Reuters sent after hours were not immediately returned by Hodlnaut or the MAS.