The Monetary Authority of Singapore (MAS) is engaging with Chocolate Finance to ensure customer withdrawals are processed in an orderly manner. ​
Chocolate Finance, a Singapore-based financial services platform operated by Chocfin, temporarily suspended instant withdrawals on 10 March 2025 due to a surge in customer requests. ​
The spike was attributed to a major surge in AXS bill payments, as users sought to maximise benefits from the platform’s miles reward programme. ​
Chocolate Finance CEO Walter de Oude shared that this surge made the programme unsustainable, leading to the removal of AXS payments via its Visa debit card on 5 March. ​
The firm acknowledged that its communication regarding the change was inadequate, leading to confusion among customers. ​
Many feared liquidity issues, triggering a wave of withdrawal requests which led to the suspension of instant withdrawals. ​
Chocolate Finance issued a joint statement with Allfunds, an independent fund custodian, affirming that customer assets remained secure and that measures were being implemented to restore normal operations. ​
MAS emphasised that digital advisors are required to segregate customer assets from their own, with funds held by independent custodians licensed and regulated by the authority. ​
The regulator said,
“Customer monies must remain intact and cannot be used to meet the liabilities of the digital advisor at all times.” ​
MAS noted that Chocolate Finance and Allfunds have confirmed compliance with these requirements. ​
The regulator will continue to monitor the situation to ensure adherence to regulatory obligations and the protection of customer interests. ​
Featured image credit: Edited from Freepik
