The Monetary Authority of Singapore (MAS) has revoked the MPI licence of crypto liquidity provider Bsquared Technology, effective May 14, 2026, marking one of the fastest enforcement actions against a newly licensed crypto firm in the city-state. The regulator’s decision follows an on-site inspection in 2025 that uncovered “significant weaknesses” in Bsquared’s risk management and conflict-of-interest controls and found that the firm provided false or misleading information repeatedly—from its licence application through the MAS inspection.
MAS also flagged breaches in Bsquared’s outsourcing arrangements with related parties, violating its guidelines on third-party risk management. The authority is now reviewing whether senior officers at the firm should be held personally accountable for the failings. Bsquared had been operating as a digital payment token service provider, facilitating crypto trading and token transfers under the Payment Services Act.
As part of the revocation process, Bsquared must submit a closure certificate from independent auditors confirming that all customer funds were properly handled. Bloomberg has reported that MAS has issued licences to 37 crypto firms in total, underscoring how unusual a revocation remains under Singapore’s licensing regime.
The move is consistent with MAS’s broader push to tighten compliance since the Payment Services Act came into force in 2020. Regulators in Singapore have ramped up scrutiny in recent years—including a final warning to unlicensed exchanges in June 2025—and continue to set a high bar for MPI licence holders, with recent approvals such as BitGo highlighting rigorous standards.
Bsquared’s case—particularly the finding of false statements from the application stage—is likely to prompt renewed reviews of historical disclosures across MPI holders and reinforces Singapore’s dual strategy of building a tokenization framework while strictly enforcing regulatory standards.
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