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Babel strengthens creditor protection, while Lono departs Singapore amid rising scrutiny

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Luno, a leading crypto exchange owned by the embattled cryptocurrency group, has shut down operations in Singapore amid increasing scrutiny surrounding the cryptocurrency industry. Despite tight regulations, bankrupt lender Babylon has been successful in expanding bankruptcy protection within the region.

Luno winds up its operations in Singapore

Luno announced its plans to exit Singapore in an official statement, announcing that it will no longer offer its services to Singaporean clients from June 20, 2023. In addition, the exchange will cancel its application for a license from the Monetary Authority of Singapore.

The statement notes that Lono made the decision to withdraw after a comprehensive assessment of its global strategies. Luno Singapore customers are advised to withdraw their crypto assets and/or Singapore Dollar (SGD) from their wallets by 19th June 2023, to enable a seamless withdrawal process.

The announcement comes amid the crisis surrounding Luno’s parent company Digital Currency Group (DCG). Recently, FTX sued DCG for alleged mismanagement. Notably, CoinDesk, an affiliate of DCG, has been exploring the possibility of selling in the midst of the crisis. While Luno has disclosed any connection between its latest decision and the DCG matter, it has confirmed that its operations in other regions remain unaffected.

The exchange acknowledged that many of its customers in Singapore will be disappointed with the decision, but noted that it remains determined to make digital currencies more accessible to everyone. Despite winding down operations in the city-state, Lono believes Singapore has the potential to lead the use of cryptocurrencies to create a transparent and robust financial system.

Once hailed as one of the most crypto-friendly regions globally, Singapore has welcomed a wave of crypto entities due to its regulatory climate. However, the city-state has recently taken a tougher stance on crypto regulations in response to recent explosions in the industry.

Babylon expands protection in Singapore

Despite the increased scrutiny, the Singaporean authorities have tried to create a thriving environment for the crypto scene. A recent report by Bloomberg revealed that a Singaporean court has granted Babel debtors an extension on its standstill to enable it to find a way to settle its creditors.

Babel co-founder Flex Yang said the bankrupt cryptocurrency lender has been given an additional 3 months to enable it to carry out the restructuring process to settle creditors. Accordingly, the extension raises the moratorium to a deadline of July 21.

Last month, Babel proposed introducing a new DeFi project called “Babel Recovery Coins.” The company disclosed plans to leverage the project to generate enough revenue to repay creditors of $766 million.

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