A Singapore court has extended Babel Finance’s creditor protection deadline, while Luno exchange is winding up its operations in the country.
Babel Finance has secured more time for restructuring in Singapore, but Luno has decided to close down its business entirely. According to Bloomberg, Babel Finance’s creditor protection has been extended by three months.
Babel Finance Seeks Creditor Protection to Plan DeFi Project
The crypto lender wants to utilize the extended creditor protection period to propose a restructuring and build a decentralized finance (DeFi) project. Babel Finance intends to use the revenue from the DeFi project to pay off its debts, which amount to over $800 million.
Babel Finance paused withdrawals in June 2022 due to the impact of the market crash. Its decision impacted the liquidity of projects such as Zipmex, which is also seeking an extension in creditor protection deadlines.
Luno Bids Adieu to Singapore
Luno announced its intention to cease operations from Singapore after “a regular evaluation of global strategy and presence.” The Digital Currency Group (DCG) owned exchange will be operational till June 20 and asked users to withdraw funds by June 19.
Additionally, Luno has withdrawn its application for a license with the Monetary Authority of Singapore. In January this year, the exchange laid off 35% of its staff while its parent DCG grappled with the challenges of the crypto winter.
Regional Rivals’ Crypto Ambitions
On the other hand, Singapore is working on setting up a specific framework to help banks screen crypto-related businesses. The guidelines, expected to be published in the next two months, will also cover stablecoins and non-fungible tokens (NFTs.)
Whereas Singapore’s neighbor, Hong Kong, is also giving a tough fight to become Asia’s crypto capital. It recently organized a Web3 festival attended by over 10,000 people and industry leaders such as Changpeng Zhao, the co-founder of Binance.
Paul Chan, the Financial Secretary of Hong who wants to make it a regional crypto hub, believes that the timing is ripe to invest in the Web3 economy.
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Source: https://beincrypto.com/babel-finance-thrown-lifeline-luno-shuts-shop/