Singapore revokes Bsquared crypto payment license
Monetary Authority of Singapore revoked Bsquared’s Major Payment Institution license after an inspection found weak risk controls, conflict-of-interest and outsourcing breaches and misleading information.
The Monetary Authority of Singapore revoked the Major Payment Institution license of Bsquared Technology Pte. Ltd. on Wednesday after an on-site inspection found weaknesses in the company’s risk management, conflict-of-interest policies and failures to follow outsourcing guidelines. The inspection also found that the firm provided false or misleading information on multiple occasions, including during its initial licensing process.
The revocation removes Bsquared’s right to provide digital payment token services under the Payment Services Act 2019. The firm, also known as BSQ, received approval to offer those services about 16 months earlier.
MAS has directed Bsquared to obtain a closure certificate from its auditors confirming that all customer funds have been returned to their rightful recipients. Bsquared told the regulator it holds no outstanding customer assets. In its public statement, MAS wrote, “MAS takes a serious view of the breaches committed by BSQ, and is reviewing the responsibilities of key officers of BSQ.” The regulator did not identify any individuals by name.
Revocations of digital payment token licenses remain uncommon in Singapore. MAS has granted 37 digital payment token licenses to date and continues to supervise licensed firms and take enforcement action where regulatory requirements are not met.
Singapore hosts regional and global digital-asset firms and has been expanding infrastructure that links traditional finance with digital assets. Recent institutional services allow direct minting and redemption of stablecoins from bank accounts on public blockchains to support 24/7 settlement between fiat and digital assets.
MAS did not provide a timetable for any further enforcement action against Bsquared’s officers. The regulator’s requirement for a closure certificate is intended to confirm that customer assets have been returned and that the company exits the business of providing digital payment token services in an orderly and compliant way.
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