Singapore’s central bank just made an example out of a crypto firm that apparently couldn’t keep its house in order. The Monetary Authority of Singapore (MAS) revoked the Major Payment Institution (MPI) license of Bsquared Technology Pte. Ltd. (BSQ) effective May 14, 2026, stripping the company of its ability to offer digital payment token services under the Payment Services Act 2019.
The license had been active for roughly 16 months. BSQ received it on January 1, 2025.
What MAS found, and why it matters
An on-site inspection conducted in 2025 uncovered what MAS described as serious regulatory breaches across multiple areas of BSQ’s operations.
The regulator found deficiencies in the firm’s risk management practices and conflict-of-interest policies. BSQ also failed to comply with MAS’s outsourcing guidelines, a set of rules that govern how financial firms delegate key functions to third parties.
MAS also determined that BSQ had provided false or misleading information to the regulator on multiple occasions.
Under section 22(7) of the Payment Services Act, BSQ is now required to submit a closure certificate from an auditor. The certificate must confirm that any client funds have been properly managed and that residual liabilities are covered. BSQ has indicated it holds no customer funds or assets, but MAS isn’t taking the firm’s word for it.
Singapore’s crypto licensing landscape
Singapore has positioned itself as one of the more welcoming, yet stringent, jurisdictions for crypto businesses in Asia. The Payment Services Act 2019 created a licensing framework that brought digital payment token providers under formal regulatory oversight, giving MAS the authority to approve, monitor, and revoke licenses.
That context makes BSQ’s trajectory especially notable. The firm cleared a high bar to obtain its license in early 2025, only to have an inspection reveal fundamental shortcomings shortly after. The gap between what BSQ presented during the licensing process and what MAS found during its inspection appears to be significant.
What this means for investors and crypto firms
For retail users and investors in Singapore, the immediate practical impact appears limited. BSQ has stated it holds no customer funds or assets, and MAS is requiring an independent audit to verify that claim.
The emphasis MAS placed on the provision of misleading information is particularly worth noting. It suggests the regulator may be increasing its focus on the integrity of information submitted during licensing and ongoing reporting.
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