Binance Philippines comeback stalls as BSP cites missing VASP license

Binance’s effort to re‑enter the Philippine market through local fintech BlockShoals has hit a fresh hurdle: the Bangko Sentral ng Pilipinas (BSP) says both firms lack the virtual asset service provider (VASP) license needed to operate in the country [2].

Key takeaways

• The BSP confirmed that Binance and BlockShoals do not hold a VASP license, which is mandatory for crypto payment and transaction services [2].
• Participation in the SEC’s StratBox sandbox does not replace the central bank’s licensing requirement, meaning the sandbox approval alone is insufficient [2].
• BlockShoals must integrate with a licensed domestic VASP within 90 days before any Binance‑linked onboarding can begin [2].
• The Philippines regulator has previously blocked Binance’s website and app after the SEC warned the exchange was operating without proper registration in 2023 [1][3].

BSP’s licensing gap blocks Binance’s return

The BSP’s statement, reported by BitPinas, makes clear that the central bank’s VASP license is separate from the Securities and Exchange Commission’s (SEC) sandbox clearance. While the SEC’s StratBox framework allows selected firms to test financial products in a supervised environment, the BSP insists that a VASP license is still required for any live crypto‑payment or transaction services [2]. Consequently, Binance’s plan to use BlockShoals as a local intermediary—where Binance would provide technology, product support, security and compliance—cannot move forward until BlockShoals links its systems to a licensed domestic VASP, a step the regulator says must be completed within 90 days [2].

History of regulatory friction in the Philippines

Binance’s troubles in the Philippines date back to late 2023, when the SEC warned that the exchange was offering securities without the necessary registration and license [1]. In March 2024, the SEC asked the National Telecommunications Commission to block access to Binance’s website, leading local internet providers to restrict the platform [1]. The BSP’s recent clarification adds another layer to this ongoing regulatory scrutiny, echoing earlier actions that saw the Binance app removed from the Philippine Google Play Store in early 2026 [2]. The central bank’s latest comment underscores that sandbox participation does not exempt firms from meeting the full suite of licensing requirements [3].

Why it matters

The BSP’s stance highlights the Philippines’ dual‑regulatory approach, where both the SEC and the central bank must approve crypto operations. For Binance, the message is clear: a sandbox approval alone will not grant market access; a full VASP license is essential. Until BlockShoals secures a partnership with a licensed VASP, Binance‑linked services will remain unavailable to Filipino users. This regulatory rigor may shape how other global crypto firms structure their entry strategies in the Philippines, emphasizing compliance with both securities and monetary authorities.