Binance and BlockShoals blocked by Philippine central bank over

Binance’s attempt to return to the Philippine crypto market through fintech partner BlockShoals has run into a fresh obstacle: the Bangko Sentral ng Pilipinas (BSP) says both firms lack the required virtual asset service provider (VASP) licence [1]. The central bank’s clarification underscores that participation in the SEC’s StratBox sandbox does not replace the need for a separate BSP licence [1][3].

Key takeaways

• The BSP confirmed that neither Binance nor BlockShoals holds a VASP licence, a prerequisite for crypto payment and transaction services in the Philippines [1].
• The SEC’s StratBox sandbox approval for BlockShoals does not satisfy BSP licensing requirements, meaning a licensed domestic VASP must be integrated within 90 days before user onboarding can begin [1].
• Binance has been blocked in the Philippines since 2023, with the SEC and NTC ordering website and app removals, and the Google Play Store removal occurring in early 2026 [1][2].
• BlockShoals received SEC sandbox clearance in November 2025, positioning it as the local intermediary for a potential Binance‑backed platform, but must still partner with a licensed VASP to proceed [1].
• Regulators are separating sandbox testing from full market access, signaling that future crypto services will require compliance with both SEC and BSP regimes [1][3].

Regulatory roadblocks for Binance’s comeback

The BSP’s statement, reported by local media BitPinas, makes clear that the central bank licence is distinct from the Securities and Exchange Commission’s sandbox approval. While BlockShoals secured initial clearance under the SEC’s StratBox framework—a supervised environment for fintech experimentation—the BSP insists that a VASP licence is still mandatory for any live crypto service [1]. The regulator gave BlockShoals a 90‑day window to integrate its systems with a licensed domestic VASP before Binance‑linked onboarding can start, effectively halting the partnership’s rollout until that condition is met [1].

Binance’s regulatory challenges in the Philippines date back to 2023, when the SEC warned that the exchange was operating without proper registration and later asked the National Telecommunications Commission (NTC) to block access to its website and related pages [2]. Subsequent actions included internet service providers restricting Binance traffic and the removal of the Binance app from the Google Play Store in early 2026, redirecting users to other regional exchanges [1].

Why it matters

The latest BSP clarification highlights the Philippines’ tightening regulatory stance on crypto operations, separating innovation sandboxes from full‑scale market participation. For Binance, the path forward now requires securing a VASP licence—either directly or through a partnership with an already‑licensed local provider—before any services tied to its technology can be offered to Filipino users. BlockShoals, meanwhile, must finalize its integration with a licensed VASP within the stipulated timeframe to keep the partnership viable. The outcome will set a precedent for how global crypto exchanges can re‑enter markets that demand dual compliance with both securities and central‑bank regulators.