The Monetary Authority of Singapore (MAS) announced on May 21 that it has revoked the main payment institution license of the cryptocurrency liquidity provider Bsquared Technology (BSQ). The revocation order took effect on May 14. The direct reasons for this revocation include BSQ’s weak risk management, insufficient controls over conflicts of interest, violations in outsourcing arrangements, and repeated provision of false or misleading information during the license application and regulatory review periods.
Grounds for Revocation: Four Specific Findings of Violations
According to MAS’s official statement, this revocation is based on four layers of violation findings. First, BSQ has systemic weaknesses in its risk management practices; second, the company failed to meet statutory requirements for conflict-of-interest controls; third, it violated MAS’s relevant regulations in its outsourcing arrangements; fourth, from BSQ’s initial application to MAS for a license through the period when MAS conducted its regulatory review, the company continuously provided false or misleading statements, and such statements occurred more than once. MAS did not specify the specific content of the false statements in the announcement.
MAS Follow-Up Enforcement Measures: Closing Customer Assets and Investigation Into Executives’ Responsibilities
MAS requires BSQ to submit a formal close-out report from an external auditor regarding the outstanding customer assets it holds. In addition to closing out assets, MAS is investigating the履職職責 of BSQ’s senior officers; MAS characterizes this measure as a “rare enforcement action.” MAS’s announcement did not state an expected timeline for completion of the executive investigation, nor did it disclose the deadline for submitting the auditor’s close-out report. BSQ’s website risk disclosure page currently shows “page not found,” and the site footer still displays a 2026 copyright date.
Current State of Singapore’s DPT License Market
MAS confirmed that, as of the publication of this announcement, Singapore has 37 licensed digital payment token service providers, and MAS approved 13 new licenses in 2024. MAS’s announcement emphasized that compliance requirements must continue to be maintained even after licenses are issued, and the BSQ case provides an enforcement precedent for existing licensed firms. MAS did not issue any additional statements regarding the regulatory status of other licensed firms.
FAQ
What kind of company is BSQ, and what is the nature of its business in Singapore?
Bsquared Technology operates under the name BSQ. It is a cryptocurrency liquidity provider. After obtaining a MAS main payment institution license, it was allowed to provide digital payment token services in Singapore. The core function of a crypto liquidity provider is to increase market trading depth and help buy and sell orders clear quickly.
After the license was revoked, how will BSQ’s existing customers’ assets be handled?
MAS has required BSQ to submit a formal close-out report from an external auditor regarding the outstanding customer assets it holds. MAS’s announcement did not publish the submission deadline for the close-out report, nor did it explain the subsequent disposition procedures for customer assets.
What type of enforcement mechanism is MAS using to investigate BSQ’s senior executives?
In the announcement, MAS explicitly characterized this investigation into executive responsibilities as a “rare enforcement measure,” which is an additional enforcement action outside of MAS’s routine license revocation procedures. MAS did not specify the specific legal basis or scope of such investigations.
