Singapore-based crypto lending and trading platform Vauld has filed an application for a moratorium in local courts while Indonesia’s OJK has banned trading firms from issuing certain financial products.
SG’s Vauld seeks moratorium for 6 months
Singapore-based crypto lending and trading platform Vauld has filed an application for a moratorium in local courts.
With this, the company has six months to prohibit any order or resolution to wind up Defi Payments, and any commencement or continuation of any proceedings against Defi Payments.
In an announcement, the company said this will give Defi Payments and the Vauld management the breathing space required to prepare for the intended restructuring that will benefit all stakeholders.
“At this time, the Vauld Group continues to have discussions with Nexo Inc as it carries out the due diligence, and also explores potential restructuring options that would best protect the interests of the Vauld Group’s stakeholders,” it said.
Most recently, Vauld said it would suspend withdrawals and trading and seek new investors, the latest sign of stress in the embattled crypto industry.
Vauld CEO Darshan Bathija said in a blog post that it was facing “financial challenges” due to “the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals in excess of a $197.7 million since June 12”.
Founded in 2018, Vauld offers an asset-backed lending and borrowing platform, which currently supports over 30 cryptocurrencies and can be used in more than 160 countries.
Last year, the company raised $25 million in a Series A funding led by Valar Ventures, a venture capital fund by PayPal co-founder Peter Thiel.
Existing investors Pantera Capital, New Form Capital, Coinbase Ventures, CMT Digital, CoinShares, Robot Ventures and Compound Labs CEO Robert Leshner re-upped in the new round.
Indonesia’s OJK bans certain financial products
The Financial Services Authority (Otoritas Jasa Keuangan, or OJK) has prohibited financial services businesses in the capital market sector from marketing, promoting or advertising financial products and services other than those that have been approved by it, such as offshore products, crypto assets and gold, according to local media.
The move is meant to improve consumer protection and prevent misunderstanding of information received by the public related to financial services products offered.
OJK has been monitoring marketing, promotion and advertising related to products and services using an integrated application platform (super app) used in a business group.
OJK found many super apps that contain investment product offerings in the form of securities (stocks, bonds) issued by overseas entities (offshore products) that are outside the purview of the OJK.
In Indonesia, stock trading is regulated by OJK while the crypto market is under the supervision of the Commodity Futures Trading Regulatory Agency.