Vauld Regulatory notice: temporary withdrawal pause from 30 June 2025
Updated over 7 months ago
This Vauld withdrawal update outlines a Singapore regulatory change and how it affects ongoing token withdrawals under the Defi Payments scheme.
What changed from a regulatory perspective?
On 6 June 2025, the Monetary Authority of Singapore published guidance on the DTSP framework under the Financial Services and Markets Act 2022.
Part 9 of the regime takes effect on 30 June 2025 and, based on published communications, no transitional period is expected for DTSP operators.
The framework introduces licensing requirements for certain Singapore entities providing digital token services outside Singapore.
How does this affect Vauld Crypto withdrawals?
External counsel advised that Defi Payments' current withdrawal support under the court-approved Scheme is likely outside the scope of 'carrying on a business' as interpreted for DTSP licensing.
That view is based on the structure of the process: no trading activity, no profit motive, and operational handling aimed only at distribution obligations.
Even so, the team sought direct regulatory clarification from MAS to reduce uncertainty before continuing services at scale.
What interim action was taken and what comes next?
Pending MAS clarification and any resulting board or Scheme Manager decisions, token withdrawals were paused from 30 June 2025 as a precautionary compliance measure.
Vauld Restructuring teams stated they are coordinating closely to restore withdrawal operations when legally and operationally appropriate.
For support, creditors can contact enquiries@vauld.com while waiting for the next Vauld news update.