MAS Revokes Bsquared Licence as Singapore Tightens Crypto Oversight

The Monetary Authority of Singapore (MAS) announced the revocation on 20 May, effective 14 May, after an on-site inspection uncovered serious breaches. These included false or misleading statements provided to the regulator on multiple occasions, significant weaknesses in risk-management practices and conflict-of-interest policies, and failures to comply with outsourcing guidelines.

MAS takes "serious view of breaches"

"MAS takes a serious view of the breaches committed by BSQ, and is reviewing the responsibilities of key officers of BSQ," the regulator said in a statement.

Bsquared, which obtained its licence on 1 Jan 2025, operates as a provider of over-the-counter (OTC) trading, treasury services and payment orchestration for digital assets, primarily serving institutional and high-net-worth clients.

Bsquared did not immediately respond to Sandmark's requests for comment. The company informed MAS that its activities while licensed were limited and that there are no outstanding customers’ monies or assets held by BSQ. It must submit a closure certificate from its auditors to confirm proper handling of any funds.

Rare revocation in licensed sector

MAS has granted around 37 digital payment token services licences to date, making full revocations uncommon. This action follows the city-state's 2025 tightening of its licensing regime to address loopholes, strengthen customer asset segregation and improve risk management for offshore-focused operations.

For comparison, other licensed entities such as those operated by Robinhood and Crypto.com have maintained or expanded compliant operations in Singapore, benefiting from the jurisdiction's predictable framework.