Singapore Shuts Down Bsquared’s Crypto Payment Operations – Details

Bsquared Technology Pte Ltd has no auditors to answer to yet — but it will. Singapore’s central bank has ordered the crypto firm to produce a closure certificate confirming that all customer funds have been returned. The company told regulators it holds no outstanding customer assets.

A License Gone In 16 Months

The Monetary Authority of Singapore revoked Bsquared’s Major Payment Institution License on Wednesday after an on-site inspection turned up a range of problems.

Regulators found gaps in how the company managed risk and handled conflicts of interest. There were also failures to follow the central bank’s outsourcing rules.

Worse, officials said Bsquared had given false or misleading information to MAS on multiple occasions — starting from when it first applied for the license and continuing through the inspection itself. The firm, also known as BSQ, had held the license for just 16 months.

MAS Not Done With Bsquared

The central bank made clear that revoking the license is not the end of the matter. MAS said it is now reviewing the conduct of the company’s key officers, signaling that individuals within the firm could face separate consequences.

Singapore has licensed 37 entities to offer digital payment token services. Revocations are rare. The action against Bsquared puts other operators on notice that the regulator will move against firms that fall short — or mislead — authorities.

Singapore has built a reputation as one of Asia’s leading centers for crypto business. Coinbase and Ripple maintain regional offices there. Crypto.com has its global headquarters in the city-state.

That standing has come partly from how seriously regulators treat licensing requirements. Last year, MAS rejected an application from AmazingTech, the operator of Tokenize Xchange, and the Commercial Affairs Department later launched a probe into the company.

The Bsquared revocation fits a pattern: Singapore wants the business, but not at the cost of oversight.

The city-state has also been expanding its digital asset ambitions in other areas. Singapore Gulf Bank recently launched a service letting institutional clients mint and redeem stablecoins directly through their bank accounts via the Solana blockchain.

Featured image from KOLN, chart from TradingView