Bsquared Loses Singapore Crypto Licence Arabian Post

(MENAFN- The Arabian Post) clearfix">Singapore's central bank has revoked Bsquared Technology's major payment institution licence after finding serious regulatory breaches, barring the local crypto liquidity provider from offering digital payment token services in the city-state.

The Monetary Authority of Singapore said the revocation took effect on 14 May 2026, marking a firm enforcement step in one of Asia's most closely watched digital-asset markets. Bsquared Technology Pte Ltd, also referred to as BSQ, had been licensed on 1 January 2025, meaning the company lost its authorisation less than 17 months after securing approval.

The action followed an onsite inspection in 2025 that uncovered significant weaknesses in the company's risk management practices and conflict-of-interest policies. The regulator also found that BSQ failed to comply with outsourcing guidelines in arrangements involving related entities, an area that has become increasingly important as crypto firms rely on affiliated companies, technology vendors and market-making networks across jurisdictions.

A further allegation substantially raised the seriousness of the case: BSQ was found to have provided information that was false or misleading in material particulars on multiple occasions. The inaccurate information was said to have been given from the time of its licence application through to the inspection process, suggesting that the regulator's concerns extended beyond isolated operational lapses.

The revocation means BSQ can no longer provide digital payment token services in Singapore under the Payment Services Act 2019. Major payment institutions are allowed to conduct regulated payment services above specified transaction thresholds, but they are expected to maintain robust governance, anti-money-laundering controls, technology risk safeguards, outsourcing oversight and accurate disclosures to the regulator.

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Singapore has sought to position itself as a trusted digital-assets hub while avoiding the lightly supervised models that contributed to high-profile collapses across the global crypto industry. The city-state has welcomed well-capitalised firms with strong compliance systems, but has made clear that licensing is not a permanent endorsement and can be withdrawn if a company falls short of regulatory standards.

The move is significant because revocations of this kind remain uncommon in Singapore's digital-token sector. The regulator has more often relied on a high entry bar, prolonged assessment of applications, business restrictions and supervisory engagement. Removing an existing licence sends a sharper signal to the market that deficiencies in internal controls, governance and candour with regulators can carry consequences beyond fines or remedial directions.

Singapore's licensing framework has attracted major exchanges, payment companies, stablecoin issuers and institutional digital-asset firms. Coinbase, Circle, OKX, Upbit, Gemini, BitGo and other players have secured approvals or expanded regulated operations in the jurisdiction, while several applicants have withdrawn or failed to progress through the process. The result has been a smaller but more closely supervised pool of licensed operators compared with the number of firms that initially sought access to the market.

Digital payment token services remain a sensitive area for regulators because of their exposure to money laundering, sanctions evasion, fraud, cyber risk and cross-border opacity. Liquidity providers face additional scrutiny because they can sit close to trading flows, token issuance, exchange activity and related-party arrangements. Weak controls in such firms can make it harder to detect conflicts of interest, market manipulation risks or suspicious transaction patterns.

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BSQ's case also comes against a broader tightening of rules for digital-token service providers operating from Singapore. Firms that provide token services outside Singapore from a Singapore base are subject to strict requirements, with the regulator warning that business models serving only overseas customers can pose higher money-laundering risks. This has pushed companies to clarify their operating structures, licensing status and customer-facing activities.

The regulatory direction is consistent with Singapore's post-2022 approach to crypto oversight. After the collapse of several global digital-asset businesses and sharp losses for retail investors, authorities strengthened investor-protection rules, restricted certain promotional practices, and emphasised that cryptocurrency trading remains highly risky for the public. At the same time, they have supported institutional use cases in tokenisation, settlement, cross-border payments and regulated stablecoins.

For licensed firms, the BSQ decision raises the stakes around governance documentation, board oversight, outsourcing registers, risk assessments and the accuracy of information submitted during applications and inspections. Compliance teams are likely to review representations made to the regulator, especially where business lines depend on affiliates or overseas partners.

Arabian Post – Crypto News Network

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