Singapore’s Monetary Authority (MAS) has revoked the Major Payment Institution Licence held by Bsquared Technology Pte. Ltd., barring the company from operating in digital payment token services. This decision follows an on-site inspection that uncovered critical weaknesses in Bsquared’s risk management, conflict-of-interest policies, and compliance with outsourcing guidelines.
The regulator also found that Bsquared provided false or misleading information throughout the licensing process and during the inspection, raising serious concerns about the company’s transparency and governance. Bsquared, known under the abbreviation BSQ, had been licensed to offer digital payment services under Singapore’s Payment Services Act 2019 for just over a year.
As part of the license revocation, MAS mandated Bsquared to submit a closure certificate from its auditors, confirming the return of all customer funds. Bsquared has stated that no customer assets remain under its control. The central bank is reviewing the responsibilities of the company’s key officers in relation to the breaches.
License revocation cases remain rare in Singapore, which has issued 37 digital payment token service licenses to date. Previously, MAS rejected an application from AmazingTech, tied to the operator of Tokenize Xchange, which prompted a government probe. This enforcement highlights Singapore’s commitment to maintaining stringent regulatory standards in its growing crypto sector.
Singapore continues to strengthen its position as a leading regional hub for digital assets and blockchain innovation. Global crypto firms such as Coinbase, Ripple, and Crypto.com have established significant presences in the city-state. Additionally, the financial sector is advancing integration with digital tokens, demonstrated recently by Gulf Bank’s launch of institutional stablecoin minting and redemption via the Solana blockchain, allowing around-the-clock fiat-to-digital asset settlement.