Singapore Revokes Bsquared Crypto Payment Licence Over Regulatory Violations

Singapore’s central bank has revoked the crypto payment licence of Bsquared Technology Pte Ltd, also known as BSQ, after finding multiple regulatory breaches during an inspection. The decision removes the company’s right to provide digital payment token services in the country.

The Monetary Authority of Singapore (MAS) said the action followed an on-site review that uncovered weaknesses in Bsquared’s risk management systems, conflict-of-interest controls and outsourcing practices.

MAS Flags False Information and Compliance Failures

According to MAS, Bsquared provided false or misleading information on several occasions, including during its licence application process and throughout the regulatory inspection.

The regulator said these issues raised serious concerns about the company’s internal controls and ability to comply with Singapore’s financial rules. Bsquared had received approval to operate digital payment token services under the Payment Services Act 2019 just 16 months ago.

Bsquared Ordered to Return Customer Funds

MAS has instructed the company to submit a closure certificate from its auditors confirming that all customer funds have been returned. Bsquared reportedly told the regulator that it currently holds no outstanding customer assets.

The central bank also said it is reviewing the responsibilities of key officers at the company due to the seriousness of the breaches.

Singapore Maintains Strong Oversight of Crypto Sector

Singapore has approved only 37 digital payment token licences so far, making licence revocations relatively rare. The country has become a major crypto hub in Asia, hosting regional operations for several large digital asset companies.

At the same time, regulators continue to enforce strict compliance standards as Singapore expands its digital asset and blockchain infrastructure.