Singapore regulator pulls Bsquared’s crypto license after inspection finds multiple failures
Singapore’s central bank has revoked the Major Payment Institution license of Bsquared Technology Pte Ltd (BSQ), ordering the crypto firm to produce a closure certificate confirming that all customer funds have been returned. Bsquared has told regulators it holds no outstanding customer assets.
The Monetary Authority of Singapore (MAS) said the action follows an on-site inspection that uncovered “a range of problems.” Regulators flagged gaps in the company’s risk management and handling of conflicts of interest, breaches of MAS outsourcing rules, and — most seriously — instances where Bsquared gave false or misleading information to the authority. Those misrepresentations date back to the firm’s initial license application and continued through the inspection process. Bsquared had held the license for just 16 months.
MAS made clear that revocation is not the final step: it is reviewing the conduct of the firm’s key officers, signaling that individuals could face separate regulatory or enforcement consequences.
The decision is notable because license revocations are rare in Singapore’s tightly regulated crypto ecosystem. The city-state has authorized 37 entities to offer digital payment token services, and regulators have repeatedly emphasized that they want crypto business — but only under strict oversight. The Bsquared case follows other tough regulatory moves, including MAS’s rejection last year of an application from AmazingTech (operator of Tokenize Xchange) and a subsequent probe by Singapore’s Commercial Affairs Department.
The enforcement sends a blunt message to the industry: lapses in governance, outsourcing controls, or candor with regulators can cost firms their operating status. That stance underpins Singapore’s reputation as one of Asia’s leading crypto hubs, home to regional offices for Coinbase and Ripple and Crypto.com’s global headquarters.
Meanwhile, Singapore continues to expand its digital-asset infrastructure. Separately, Singapore Gulf Bank recently launched a service allowing institutional clients to mint and redeem stablecoins directly through bank accounts on the Solana blockchain — a sign that while regulators clamp down on noncompliant firms, the city-state is still actively building crypto capabilities.
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