Key Highlights
- Singapore’s financial regulator terminated Bsquared’s cryptocurrency operating license, with effect from 14 May 2026.
- The company has been prohibited from offering digital payment token services within Singapore’s jurisdiction.
- Regulatory inspection revealed violations in risk management protocols and conflict of interest safeguards.
- The firm demonstrated inadequate oversight of outsourcing relationships involving connected parties.
- Authorities discovered that Bsquared submitted inaccurate and deceptive information throughout licensing procedures and regulatory examinations.
Singapore’s financial watchdog has cancelled the cryptocurrency operating permit of Bsquared Technology Pte Ltd following serious regulatory violations. The Monetary Authority of Singapore announced that Bsquared has been barred from conducting digital payment token operations. The enforcement measure became effective on 14 May 2026 and stems from discoveries made during a comprehensive regulatory examination.
Regulatory Enforcement Following Inspection Findings
The Monetary Authority of Singapore (MAS) cancelled Bsquared’s Major Payment Institution authorization under the Payment Services Act 2019. According to the regulator, the firm is now prohibited from conducting cryptocurrency token operations starting 14 May.
MAS had originally authorized Bsquared to operate on 1 January 2025 for digital payment token activities. The approved services encompassed operations connected to cryptocurrency exchange and token movement.
During 2025, MAS performed a comprehensive onsite examination of Bsquared’s operations. The assessment uncovered numerous violations of mandated regulatory standards.
The financial authority identified deficiencies in the company’s risk management frameworks. Additionally, the examination revealed inadequacies in policies designed to manage conflicts of interest.
MAS determined that Bsquared violated its Guidelines on Outsourcing. The problems centered on contractual relationships with affiliated organizations.
The regulator additionally discovered that Bsquared submitted deceptive or inaccurate information. These misrepresentations occurred both during the initial licensing application and subsequently throughout the inspection period.
MAS declared, “Entities that breach regulatory requirements or provide inaccurate information will face consequences.” The regulator emphasized its firm stance on such violations.
Wind-Down Requirements and Ongoing Oversight
MAS said Bsquared operated with restricted licensed activities throughout its authorization period. The company has notified the regulator that it currently maintains no pending customer funds or digital assets.
Bsquared must now execute a structured wind-down procedure as mandated by law. This involves providing a formal closure certificate prepared by independent auditors.
The certificate must verify that all customer funds were distributed to their designated recipients. It must additionally verify arrangements covering any potential outstanding obligations.
These mandates derive from section 22(7) of the Payment Services Act. MAS employs this framework to safeguard customer interests when firms cease operations.
The regulator has initiated a review examining the conduct of Bsquared’s executive officers. This assessment could result in additional enforcement measures should accountability concerns emerge.
Singapore has strengthened supervision of cryptocurrency operators within its regulatory architecture. MAS maintains active monitoring of compliance among all digital payment token service providers.
The license cancellation became operative on 14 May 2026, and Bsquared has lost all authorization to conduct cryptocurrency services throughout Singapore.
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