MAS Revokes Bsquared's Crypto Licence Over Risk Management Failures and False Information

MAS granted Bsquared this licence on 1 January 2025 to operate crypto trading and token transfers. During a 2025 onsite inspection, examiners uncovered weaknesses in the firm’s risk‑management framework and gaps in its conflict‑of‑interest policies.

They also noted that Bsquared’s outsourcing arrangements with related entities did not meet MAS guidelines. In addition, the regulator determined that Bsquared submitted false or misleading information both in its licence application and later during the inspection process.

Following the announcement, Bitcoin (BTC) traded at $62,400, down 0.9% in the 24‑hour window, while Ethereum (ETH) slipped to $3,250, a 1.1% decline. The global crypto market cap stood at roughly $1.18 trillion, little changed from the prior day.

Bsquared told MAS it holds no outstanding customer funds or assets and must now complete a formal closure process, including an auditor‑issued closure certificate confirming that all customer funds reached intended recipients and provisions for any unforeseen liabilities.

Market participants should watch for MAS’s ongoing review of key officers at Bsquared, any further enforcement actions, and how the regulator’s stance influences upcoming licence applications from other crypto firms.