We have had notification that ECXX is delisting a number of tokens including JSE. The trading pairs have been suspended with delisting imminent on the 14th February.
The exchange has cited changes in regulation and now requires all new and existing tokens to appoint a legal firm in Singapore to meet their requirements.
Original message received 6/1/2020:
As you may be aware, our Singapore Central Bank, Monetary Authority of Singapore (MAS) has issued an Act (‘Payment Services Act’) to regulate the activities of Digital Tokens.
The Payment Services (PS) Act is a forward looking and flexible framework for the regulation of payment systems and payment service providers in Singapore. It provides for regulatory certainty and consumer safeguards, while encouraging innovation and growth of payment services and FinTech.
ECXX Global Pte. Ltd. operates as a digital asset exchange in Singapore and hence is required to apply a payment service provider licence under this PS Act. A legal opinion (laws of Singapore) on the token is required to ensure that it has no features of a security token.
In accordance to the act, our exchange is now reviewing all tokens listed on our exchange and we would like to seek your action to obtain a legal opinion for your token.
Please provide a Legal Opinion on the token, the Legal Opinion must be issued by a qualified Singapore law firm, under the laws of Singapore.
We seek your assistance provide to us by 18th Jan 2020 in order to review the token listing.
Full message received: 5:53am 6/2/2020
“ECXX Global Pte. Ltd. operates as a digital asset exchange in Singapore and hence is required to apply a payment service provider licence under the Payment Services Act.
A legal opinion (laws of Singapore) on the listed tokens is required under the regulations. The Payment Services Act (PSA) has commenced on the 28th January 2020.
In regards to this matter, we have been sending out multiple emails to you during the period from 6th Jan to 13th Jan 2020 and the deadline for submitting the legal opinion was on
18th Jan 2020. We have also emphasized that failure to provide the legal opinion will lead to suspension and/or de-listing of the token as per Clause 20.2(1) on our token listing agreement.
In accordance to the Payment Services Act, our exchange has reviewed all the tokens listed on our exchange and we would like to inform that we have to suspend and delist the token due to the changes of regulations. The following token will be suspended with effect from 7 Feb 2020 and shall be delisted on 14 Feb 2020, if we did not receive the required legal opinion from you by 13 Feb 2020:
JSE – JSEcoin
We appreciate your understanding, support, and cooperation in this matter.
We responded to their initial query on the 6th January stating that we do not have legal representation in Singapore and do not have funds available to appoint a Singapore legal firm.
While the trading volumes on ECXX were very low it is still a loss to the project and something we would have preferred to avoid. However under the circumstances we don’t believe that there is sufficient value added to comply with the new requirements at the expense of the project.
We recommend that anyone holding funds on ECXX withdraw them as soon as possible.