Singapore’s central bank has pulled the crypto payment license of Bsquared Technology Pte. Ltd., stripping the firm of its right to provide digital payment token services after uncovering a series of breaches.
In a Wednesday announcement, the Monetary Authority of Singapore (MAS) said it revoked Bsquared’s Major Payment Institution Licence after an on-site inspection found weaknesses in the company’s risk management practices and conflict-of-interest policies, as well as failures to comply with the regulator’s outsourcing guidelines.
MAS said Bsquared provided false or misleading information on multiple occasions, from its initial license application through the inspection itself.
Bsquared, also known as BSQ, obtained its license 16 months ago after receiving approval to offer digital payment token services under Singapore’s Payment Services Act 2019.
Related: Singapore’s OCBC launches tokenized gold fund on Ethereum and Solana
MAS orders Bsquared to submit a closure certificate
The company is required to submit a closure certificate from its auditors confirming that all customer funds have been returned to their recipients. Bsquared told MAS it held no outstanding customer assets.
“MAS takes a serious view of the breaches committed by BSQ, and is reviewing the responsibilities of key officers of BSQ,” the central bank added.
MAS revokes Bsquared’s license. Source: MAS
MAS has granted 37 digital payment token services licenses so far, and revocations remain uncommon. Last year, MAS rejected an application from AmazingTech, the operator of Tokenize Xchange, and the Commercial Affairs Department subsequently launched a probe into the company.
Related: Crypto dispute over Resupply exploit lands in Singapore harassment court
Singapore pushes deeper into digital asset infrastructure
Singapore has built a reputation as one of Asia’s leading crypto hubs, home to regional offices of Coinbase and Ripple, as well as the global headquarters of Crypto.com.
The city-state is also cementing its position as a leading hub for integrating traditional finance with digital assets.
Last month, Singapore Gulf Bank launched a service allowing institutional clients to mint and redeem stablecoins directly from their bank accounts via the Solana blockchain, enabling 24/7 settlement between fiat and digital assets.
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