Singapore Revokes Crypto Firm’s License in Rare Regulatory Crackdown

The Monetary Authority of Singapore has revoked the crypto payment license of Bsquared Technology after uncovering what regulators described as “serious breaches” involving risk management, outsourcing controls, and misleading information provided to authorities. 

The rare enforcement action now highlights Singapore’s increasingly strict approach toward crypto compliance and digital asset oversight.

MAS Revokes Bsquared’s Payment License

Singapore’s central bank officially revoked Bsquared Technology’s Major Payment Institution license effective May 14, 2026. The company is now prohibited from offering digital payment token services under Singapore’s Payment Services Act.

Bsquared, also known as BSQ, originally received its crypto license on January 1, 2025, allowing it to operate digital asset payment services inside Singapore’s regulated crypto market.

However, an onsite inspection conducted by MAS during 2025 reportedly uncovered multiple compliance failures inside the company’s operations.

According to the regulator, the breaches included major weaknesses in risk management systems, conflict-of-interest policies, and outsourcing arrangements involving related entities.

MAS also accused the company of providing false or misleading information on several occasions, including during its licensing process and later inspections.

Singapore Tightens Crypto Oversight

Singapore has spent recent years positioning itself as one of Asia’s largest regulated crypto hubs.

At the same time, regulators have steadily increased compliance standards for digital asset firms following several global crypto collapses and fraud scandals since 2022.

The Bsquared enforcement action is considered rare because Singapore’s central bank typically avoids publicly revoking licenses unless serious regulatory failures are involved.

MAS stated it takes inaccurate disclosures and weak operational controls extremely seriously, especially from firms holding regulated digital payment licenses. The regulator also confirmed it is reviewing the responsibilities of key officers tied to Bsquared’s operations.

Customer Assets Reportedly Unaffected

Despite the enforcement action, MAS said Bsquared’s licensed activities remained relatively limited while operating in Singapore.

The company reportedly informed regulators that it currently holds no outstanding customer funds or assets.

Bsquared must still submit an official closure certificate from auditors confirming that all customer-related obligations have been fully resolved and that sufficient provisions exist for any unexpected liabilities.

The case sends another strong warning to crypto companies operating under regulated frameworks globally.