Binance and BlockShoals lack VASP license, says Philippine central

Binance’s attempt to re‑enter the Philippines through local fintech BlockShoals Technologies has hit a regulatory roadblock: the Bangko Sentral ng Pilipinas (BSP) says neither firm holds the required virtual asset service provider (VASP) license [1].

Key takeaways

• The BSP confirms Binance and BlockShoals do not have a Certificate of Authority to operate as a VASP in the Philippines [2].
• Participation in the SEC’s StratBox sandbox does not replace the need for a separate central‑bank licence, according to the BSP [1].
• BlockShoals must link its platform to a licensed domestic VASP within 90 days before any Binance‑linked user onboarding can begin [3].
• The SEC has revised its sandbox description, labeling Binance as a global crypto‑asset service provider (CASP) rather than a VASP [2].
• Prior enforcement actions in 2024‑2026 saw the Philippines block Binance’s website and app access after SEC warnings [1].

Regulatory gap highlighted by the BSP

The BSP’s statement makes clear that the VASP licence, issued by the central bank, is essential for facilitating crypto payment and transaction rails and is distinct from any approval granted by the Securities and Exchange Commission (SEC) [1]. While BlockShoals received SEC clearance to operate under the StratBox sandbox in November 2025, the BSP emphasizes that sandbox participation does not exempt entities from complying with central‑bank licensing requirements [1][2]. The regulator cited BSP Circular No. 1153 (2022) and SEC Memorandum Circular No. 9 (2024) as the governing frameworks, noting that both bodies are coordinating on the matter [2].

Next steps for BlockShoals and Binance

Under the revised sandbox terms, BlockShoals is required to integrate its systems with an unnamed licensed domestic VASP within a 90‑day window before any public onboarding through Binance’s infrastructure can commence [3]. The SEC’s clarification also re‑brands Binance’s role as a global crypto‑asset service provider (CASP) partner, rather than a VASP, narrowing the scope of its activities in the sandbox environment [2]. Completion of the integration would allow BlockShoals to proceed with the testing phase scheduled for the second half of 2026, which is expected to run for at least two years [2].

Why it matters

The BSP’s decision underscores the Philippines’ insistence on separate regulatory compliance for crypto service providers, separating sandbox innovation from full market participation. For Binance, the message is clear: sandbox approval alone is insufficient; a VASP licence is mandatory to offer live crypto services. BlockShoals’ ability to secure a partnership with a licensed VASP will determine whether Binance can finally regain a foothold in the Philippine market. Continued coordination between the BSP and SEC suggests that future regulatory guidance may evolve, but compliance with both frameworks remains a prerequisite for any crypto operator seeking to operate in the country.