The Monetary Authority of Singapore (MAS) revoked the major payment institution license of Bsquared Technology Pte Ltd, thereby disqualifying the company from providing digital payment token services. Regulators cited significant deficiencies in governance and internal controls identified during an on-site inspection.
On-site inspection revealed deficiencies
MAS stated that the issues primarily involved risk management, conflict of interest policies, and oversight of outsourcing arrangements. The regulator also noted that Bsquared repeatedly provided false or misleading information during its license application and subsequent reviews.
Bsquared operated under the name BSQ and was granted authorization to conduct related business approximately 16 months ago. Following the revocation of this license, the company can no longer provide digital payment token services under the Payment Services Act 2019.
The auditing institution must issue a completion certificate.
MAS requires B squared to obtain a clearance certificate from an audit firm confirming that customer funds have been returned to the respective recipients. The company informed the regulator that there are currently no outstanding customer assets.
Nevertheless, regulators require verification to be completed through audit procedures and are treating the related violations seriously. MAS also stated that it is reviewing the responsibilities of key personnel at BSQ.
License management shifts to ongoing review
In Singapore, it is rare for cryptocurrency businesses to have their licenses directly revoked. Public information shows that MAS has issued 37 digital payment token licenses to date, with revocations remaining uncommon.
Previously, MAS rejected AmazingTech's application to operate Tokenize Xchange, after which the Accounting and Corporate Regulatory Authority of Singapore launched an investigation into the company. The latest case demonstrates that local regulators are no longer focused solely on licensing approvals but are also placing greater emphasis on ongoing governance, disclosure practices, and outsourcing management by licensed entities.
For crypto companies preparing to apply for or already holding a license, this incident sends a clearer enforcement signal: poor governance or false disclosures may result not only in corrective actions or fines, but also in the direct loss of operating privileges.