MAS revoke Bsquared license. Source: MAS
On May 14, 2026, Singapore’s Monetary Authority of Singapore revoked the crypto license of Bsquared Technology Pte Ltd, a Singapore-based crypto liquidity and data provider operating under the brand BSQ in a jurisdiction that has granted just 37 digital payment token licences since the Payment Services Act 2019 came into force, BSQ is no longer permitted to provide digital payment token services in Singapore.
Founded in 2018, Bsquared Technology operated as a B2B-facing liquidity provider offering OTC market-making and multi-currency bilateral liquidity across stablecoins, BTC, and ETH, also crypto payment infrastructure for cross-border e-commerce platforms, exchanges and institutional funds. Its clients were banks, brokerages, payment providers and traders. They kept liquidity flowing behind the scenes which makes the regulatory breach pattern MAS uncovered more surprising.
MAS conducted an on-site inspection of BSQ during 2025. What it found was not a single compliance gap,instead It exposed what was really happening across multiple sectors all at once.
Risk management and conflict-of-interest failures. The inspection revealed high weaknesses in BSQ's risk management practices and its policies governing conflicts of interest. For a firm whose entire business model rests on providing liquidity to clients who also happen to be counterparties, Managing conflicts of interest isn't meant to be one-sided, it’s built into the very foundation.
MAS also found that BSQ had failed to meet its outsourcing guidelines in its arrangements with related entities, a requirement designed to ensure regulated firms don't hollow out their compliance obligations by routing key functions through unmonitored affiliates.
MAS also found out that BSQ had provided false or misleading information to the regulator on multiple occasions, not once, and not under a single point of pressure. Critically, this pattern began at the licence application stage and continued during the MAS inspection itself. Misleading a regulator once could be a mistake. Doing so during an active investigation is a choice.
The closure requirement. BSQ has been ordered to submit a closure certificate from its auditors confirming all customer funds have been returned. The firm told MAS it holds no outstanding customer assets, a claim that will require independent auditor verification before MAS considers the matter resolved.
Singapore holds a carefully constructed reputation as Asia's most reliable crypto regulatory environment, home to licensed operations from Coinbase, Ripple, OKX, Paxos, and GSR, among others. That credibility depends on MAS being willing to act when firms abuse it. The BSQ revocation, coming less than 18 months after the licence was granted, reinforces two things clearly: obtaining an MPI licence is not a permanent shield, and providing false information to MAS at any stage including during inspections will have consequences that extend beyond the firm itself.
For crypto businesses operating under or applying for Singapore licences in 2026, the message is clear. The framework rewards genuine compliance. It does not accommodate selective honesty.