Key Takeaways:
Singapore’s central bank has revoked the crypto payment license of Bsquared Technology just 16 months after it was granted, citing a series of serious regulatory breaches and the submission of false information.
"MAS takes a serious view of the breaches committed by BSQ, and is reviewing the responsibilities of key officers of BSQ,” the Monetary Authority of Singapore (MAS) said in a statement Wednesday.
The revocation, effective May 14, followed an on-site inspection that uncovered “significant weaknesses” in Bsquared’s risk-management and conflict-of-interest policies. The MAS also found failures to comply with outsourcing guidelines and noted the firm, also known as BSQ, had provided false or misleading statements on multiple occasions since its initial application.
The action against Bsquared, one of only 37 firms to receive a digital payment token license, underscores a stricter enforcement posture in one of Asia’s primary crypto hubs. While Singapore is home to major players like Coinbase and Crypto.com, the move signals that regulators are intensifying scrutiny to mitigate risks after a series of high-profile industry collapses in 2022.
Bsquared, a local crypto liquidity provider, is now barred from providing digital payment token services. The company informed the MAS that it held no outstanding customer assets, according to the authority. It must now submit a closure certificate from its auditors to confirm all customer funds have been returned.
License revocations are uncommon in Singapore’s crypto sector. The MAS has focused on building a reputation as a well-regulated financial center, attracting firms seeking clear rules. Last year, the authority rejected an application from AmazingTech, operator of the Tokenize Xchange, which was subsequently investigated by the Commercial Affairs Department.
The enforcement action comes as Singapore continues to push for deeper integration between traditional finance and digital assets. Last month, Singapore Gulf Bank launched a service for institutional clients to mint and redeem stablecoins directly from their bank accounts, highlighting the city-state's ongoing commitment to developing its digital asset infrastructure.
This article is for informational purposes only and does not constitute investment advice.
