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Introduction
On 20 May 2026, the Monetary Authority of Singapore (MAS) announced that it had revoked the Major Payment Institution licence of Bsquared Technology Pte. Ltd. with effect from 14 May 2026. MAS also stated that Bsquared is no longer permitted to provide digital payment token services in Singapore.
The announcement serves as a timely reminder that regulatory approval is only the starting point. Licensed payment institutions must demonstrate that their governance, controls, compliance arrangements, and regulatory submissions remain accurate, effective, and properly evidenced on an ongoing basis.
What Happened
According to the MAS media release, serious breaches of regulatory requirements were identified during an onsite inspection of Bsquared in 2025. These issues identified included:
- Significant weaknesses in risk management practices
- Significant weaknesses in its conflict-of-interest policies
- Failure to meet MAS’ Guidelines on Outsourcing in arrangements with related entities.
- Providing information to MAS that was false or misleading in material particulars on multiple occasions.
- Providing false or misleading information from the time of the licence application up to and including during MAS’ inspection.
MAS noted that Bsquared’s activities while licensed were limited, and that the company had informed MAS that it held no outstanding clients' monies or assets. Nonetheless, Bsquared must submit an auditor-issued closure certificate under section 22(7) of the Payment Services Act.
MAS further stated that it takes a serious view of the breaches and is reviewing the responsibilities of key officers of Bsquared. MAS made it clear that entities which breach regulatory requirements or provide inaccurate information to MAS will face consequences.
What this signals for payment institutions and digital asset firms
This case reinforces that licensing under Singapore’s Payment Services Act is not a one-off approval exercise. MAS exercises its supervisory oversight beyond the application stage and throughout the life of the licence.
This is particularly relevant for digital payment token service providers, where business models may involve fast-moving technology, outsourced arrangements, related-party dependencies, custody risks, cross-border flows and financial crime risks. While innovation remains important, MAS continues to anchor its expectations in sound governance, effective risk management, proper outsourcing oversight, transparent regulatory engagement and reliable records.
The case also highlights the importance of documentation quality. Submissions to MAS, whether during the licence application process or during supervisory inspections, must be accurate, complete, internally consistent and properly supported. A licence application should not be treated as a formality or a commercial presentation. It is a regulatory submission that forms part of the basis on which MAS assesses the applicant’s fitness, governance and control environment.
Key Compliance Lessons
The first lesson is that regulatory trust depends heavily on the quality of information provided to MAS. Firms should ensure that business model descriptions, group structures, related-party arrangements, key personnel information and compliance arrangements are accurate and capable of being substantiated. Responses to MAS queries should be reviewed carefully before submission, particularly where they relate to governance, outsourcing, risk management or operational controls.
The second lesson is that a well-prepared application pack is not sufficient. Licensed firms must maintain governance and control frameworks that continue to operate effectively after approval. This includes board and senior management oversight, risk management arrangements, conflict of interest controls, outsourcing governance, AML/CFT controls, technology risk management, regulatory reporting processes and customer asset safeguarding arrangements where applicable.
The third lesson is that documentation matters. Policies and procedures are only part of the control environment. Firms must also be able to evidence that controls are implemented, reviewed and monitored. Board minutes, compliance monitoring records, outsourcing due diligence files, risk assessments, incident logs, internal audit reports and records of MAS submissions may all become important evidence of regulatory readiness.
Related-party arrangements deserve particular attention. Where regulated activities rely on related entities, firms should ensure that outsourcing, conflict management, accountability, performance monitoring and audit rights are clearly documented and subject to proper oversight. Related-party arrangements should not be treated as lower-risk simply because they sit within the same group.
How RSM Singapore can support
Professional support helps you identify regulatory gaps before they become supervisory issues. This is especially important for payment institutions and digital asset firms that manage complex technology, outsourcing, custody, cross-border flows, and financial crime risks.
At RSM Singapore, we support payment institutions, digital asset firms, and fintech companies in the following areas:
- Assessing licensing and regulatory readiness gaps.
- Supporting licence applications and responses to MAS queries.
- Preparing for MAS inspections and remediation actions.
- Reviewing AML/CFT, governance, internal controls, and outsourcing arrangements.
- Strengthening technology, operational risk, and ongoing compliance frameworks.
Our approach is practical and multidisciplinary. We help you translate regulatory expectations into workable operating models, policies, procedures, controls, and evidence packs. We draw on capabilities across regulatory advisory, risk advisory, internal controls, technology risk, and accounting to empower you for the future.
Conclusion
The revocation of Bsquared’s MPI licence sends a clear message: licensed payment institutions must remain regulatory-ready after approval. Firms that invest early in governance, controls, documentation and compliance monitoring will be better placed to respond to supervisory scrutiny and maintain stakeholder confidence.
If your organisation is reviewing its licensing position or ongoing compliance framework, we can assist with a practical assessment of current readiness and priority areas for remediation. Connect with us today to experience the power of being understood.
