A Singapore court has extended the deadline for creditor protection for Babel Finance, while Luno winds up operations in the country.
Babel Finance secured more time to restructure in Singapore, but Luno decided to close its entire business. according to bloombergBabel Finance creditor protection has been extended for a period of three months.
Babel Finance seeks to protect the creditor Ra DeFi plan project
A cryptocurrency lender wants to take advantage of the extended creditor protection period to propose a restructuring and building of a decentralized finance (DeFi) project. Babel Finance intends to use the proceeds from the DeFi project to pay down its more than $800 million in debt.
Babel Finance paused withdrawals in June 2022 due to the impact of the market crash. Its decision affected the liquidity of projects such as Zipmex, which is also seeking extended deadlines to protect creditors.
Luno presents Adieu for Singapore
Lono announce It intends to discontinue operations from Singapore after a “regular assessment of its global strategy and presence.” The DCG-owned exchange will operate until June 20 and will require users to withdraw funds by June 19.
In addition, Luno withdrew its application for a license from the Monetary Authority of Singapore. In January this year, the exchange laid off 35% of its staff while parent company DCG grappled with the challenges of the crypto winter.
regional competitors Crypto ambitions
On the other hand, Singapore is working on a specific framework to help banks screen crypto-related businesses. The guidelines, which are expected to be published in the next couple of months, will also cover stablecoins and non-fungible tokens (NFTs).
While Hong Kong, Singapore’s neighbor, is also in an uphill battle to become the crypto capital of Asia. It recently organized a Web3 Festival attended by over 10,000 people and industry leaders such as Binance co-founder Changpeng Zhao.
Paul Chan, Hong’s financial secretary who wants to make it a regional cryptocurrency hub, thinks it’s time to invest in the Web3 economy.
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