Finance chocolate stops instant withdrawals due to “high demand”

Singapore: Chocolate Finance temporarily suspended the withdrawals of instant funds due to “high demand”, said in a notification to customers (March 10).

The financial service platform said that withdrawals will last three to 10 business days before reflecting in the users’ bank accounts. Such withdrawal requests cannot be canceled once they are confirmed.

The suspension comes after the influence of personal finance, Seth Wee, better known as Sethisfy, uploaded a YouTube video, explaining -and the decision to withdraw all his money from chocolate finances. One of the reasons for granting was the elimination by the company support for AXS payments.

The founder of the travel site The Milelion, Aaron Wong, also pointed out on March 5, both posts making rounds on the Reddit Forum and Hardwarezone.

Chocolate Finance started working with AXS on February 11 and took the card from the payment platform on March 5.

Financial blogger Dawn Cher, also known as SG Babe budget, also shared in an Instagram story post that he received a separate letter from Chocolate Finance, which attributed to increase withdrawals to “partially driven by Social Media”.

On Monday afterwards, the company stated in a statement that Chocolate Finance remains a “strong and stable place for the backup” and that it is “here in the long run”.

He said that transparency and customer service are the “main priorities”.

In the frequent questions of their website, Chocolate Finance has previously allowed up to $ 20,000 in instant withdrawals per day, due to the “chocolate liquidity program”.

He said that any money deposited in his account are invested in a portfolio of fixed income funds to optimize the yields.

But, as the platform recognizes the importance of liquidity, he added that the program is a “wonderful incentive”, giving its customers instant access to their money.

The company said Monday that fund managers do not usually offer instant withdrawals, and chocolate returns to the “standard redemption process” due to the temporary increase in withdrawals.

“This break is not a liquidity problem, but a problem to manage our high transaction volume,” said Chocolate Finance, adding that card transactions are also temporarily interrupted.

Chocolate Finance said it actively implements measures to manage the volume of transaction increases and to accelerate the return to the normal service.

What is chocolate finances?

Chocolate Finance was founded last year by Walter de Oude, the founder of Singlife insurer. He is a brand under Chocfin, a holder of capital market service licenses regulated by the monetary authority in Singapore.

According to its web site, funds with chocolate finances are owned separately by custodians, including HSBC, and are not covered by Singapore Insurance Corporation, because it is not a bank. It also offers a VISA debit card, which has zero Squid Exchange market taxes (FX).

When launched, its yields higher than the cash average – 3.3 % per year at the first 20,000 USD, 3 % per year at the next $ 30,000 and a 3 % target per year – created a noise among investors.

“We do not take any tax and we do not make money until we give the target profits,” said Chocolate Finance.

He also promised to provide better cash returns for those who look like in the US dollars – a future offering of 4.6 % per year at the first $ 20,000 submitted.

However, these targets are subject to changes based on market conditions, according to Chocolate Finance.

The CNA contacted Chocolate Finance for more information about his decision to temporarily suspend instant withdrawals.