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Singapore’s central bank has revoked the Major Payment Institution license of Bsquared Technology, also known as BSQ, cutting the firm off from offering digital payment token services in the city-state.
The Monetary Authority of Singapore (MAS) said the revocation took effect on May 14. BSQ is no longer permitted to provide digital payment token services in Singapore.
MAS Cites False Disclosures and Risk Failures
MAS said an onsite inspection in 2025 uncovered serious regulatory breaches at Bsquared. The regulator pointed to significant weaknesses in the firm’s risk management practices and conflict-of-interest policies. It also cited failures to comply with MAS outsourcing guidelines in arrangements with related entities.
MAS said Bsquared provided false or misleading information in material particulars from its license application through the inspection period. The regulator also said it is reviewing the responsibilities of BSQ’s key officers.
BSQ Loses Digital Payment Token Approval
Bsquared had been licensed since Jan. 1 2025, as a Major Payment Institution offering digital payment token services. That authorization has now been revoked. MAS said Bsquared’s licensed activity had been limited. The company told the regulator it held no outstanding customer money or assets.
The firm must now submit an auditor-issued closure certificate. The certificate must confirm that customer funds, if any, have reached their intended recipients and that adequate provision has been made for unforeseen liabilities tied to its regulated activity.
Revocation Shows MAS Focus on Crypto Governance
The action underscores Singapore’s strict approach to licensed crypto firms. Outright license revocations remain relatively rare in Singapore’s digital asset sector. MAS has licensed 37 entities to provide digital payment token services, highlighting the regime’s selective approach as Singapore positions itself as a regulated digital asset hub.
For crypto firms, the message is clear. Getting licensed in Singapore is only the first step. MAS is signaling that weak governance, poor outsourcing controls and inaccurate disclosures can cost a firm its license altogether.
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Fhumulani Lukoto
Cryptocurrency Journalist
Fhumulani Lukoto holds a Bachelors Degree in Journalism enabling her to become the writer she is today. Her passion for cryptocurrency and bitcoin started in 2021 when she began producing content in the space. A naturally inquisitive person, she dove head first into all things crypto to gain the huge wealth of knowledge she has today. Based out of Gauteng, South Africa, Fhumulani is a core member of the content team at Coin Insider.