The Monetary Authority of Singapore (MAS) has revoked the major payment institution license of Bsquared Technology Pte. Ltd., also operating as BSQ, following an on-site inspection that revealed a series of serious regulatory breaches.
The inspection uncovered deficiencies in risk management practices and conflict of interest policies, as well as failures to comply with outsourcing service guidelines. Crucially, the regulator stated that BSQ provided false or misleading information on multiple occasions, from the initial license application through to the inspection process itself.
The firm had been licensed for just 16 months under Singapore’s Payment Services Act of 2019. MAS ordered Bsquared to submit a closure certificate from its auditors confirming the return of all client funds, though the company informed the regulator it held no outstanding third-party assets.
The revocation is a rare move in Singapore, which has positioned itself as a crypto-friendly hub while enforcing strict compliance. To date, MAS has granted 37 digital payment token service licenses, and revocations remain uncommon. The regulator is also examining the responsibilities of the firm’s key executives.
The action signals that regulators are increasing pressure on crypto firms globally to meet licensing and risk-management requirements, marking a notable crackdown even in jurisdictions with a pro-innovation stance.
