The Monetary Authority of Singapore (MAS) has revoked the Major Payment Institution License of Bsquared Technology Pte. Ltd. (BSQ), stripping its authorization to provide digital payment token services. An on-site inspection revealed weaknesses in risk management, conflict-of-interest policies, and outsourcing compliance guidelines. MAS also found that BSQ provided false or misleading information on multiple occasions, from its initial license application through the inspection process.
License Revoked 16 Months After Approval
Bsquared was approved to offer digital payment token services under the Payment Services Act 2019 just 16 months ago. MAS stated that the case involved not only operational weaknesses but also the accuracy of information provided to the regulator. The revocation places BSQ among a small group of crypto businesses in Singapore to lose approval after gaining access to the regulated market.
Customer Funds and Executive Accountability
MAS has ordered Bsquared to submit a closure certificate from its auditors confirming that all customer funds have been returned. The firm claimed no outstanding customer assets, but the regulator requires independent confirmation. "MAS takes a serious view of the breaches committed by BSQ and is reviewing the responsibilities of key officers," the central bank said. This indicates that management accountability is under scrutiny, which could affect individuals' ability to operate in Singapore's financial sector.
Impact on Singapore's Crypto Market
MAS has granted 37 digital payment token service licenses so far; revocations remain uncommon. Earlier, MAS rejected the application of AmazingTech, operator of Tokenize Xchange, followed by a Commercial Affairs Department probe. These cases point to a tougher compliance environment. Digital payment token businesses often rely on third-party providers for technology, liquidity, and outsourcing, which can create accountability gaps, especially when handling customer assets and cross-border flows.
Singapore continues to build digital asset infrastructure, hosting regional offices of Coinbase and Ripple, and the global headquarters of Crypto.com. Last month, Singapore Gulf Bank launched a service enabling institutional clients to mint and redeem stablecoins directly via Solana blockchain, enabling 24/7 settlement between fiat and digital assets. As stablecoins and tokenized assets become more connected to banking channels, MAS has stronger incentives to remove firms that fail control and disclosure standards.