Binance faces licensing roadblock in Philippines return plan

Binance’s bid to resume operations in the Philippines through local fintech partner BlockShoals Technologies has been stalled by the Bangko Sentral ng Pilipinas (BSP), which says neither firm holds the virtual asset service provider (VASP) license needed for crypto‑payment and transaction services [2].

Key takeaways

• The BSP confirmed that Binance and BlockShoals do not have a VASP license, a prerequisite for offering crypto‑related payment services in the Philippines [2].
• Participation in the SEC’s StratBox sandbox does not replace the separate central‑bank licensing requirement, according to the BSP [2].
• BlockShoals must link its platform with a licensed domestic VASP within 90 days before any Binance‑linked user onboarding can begin [2].
• The SEC previously warned that Binance was operating without proper registration in November 2023 and later ordered internet service providers to block the platform in 2024 [1].
• The regulatory distinction between SEC sandbox approval and BSP licensing underscores the Philippines’ dual‑track oversight of crypto activities [4].

BSP licensing requirement overrides SEC sandbox approval

The BSP’s statement, reported by local crypto outlet BitPinas, makes clear that a VASP license is mandatory for firms providing virtual‑asset payment and transaction services, regardless of any approval from the Philippine Securities and Exchange Commission’s StratBox sandbox [3]. While BlockShoals received SEC clearance to act as the local intermediary for a test platform, the central bank emphasized that sandbox participation alone does not satisfy its licensing regime [2]. The revised sandbox terms now require BlockShoals to integrate with a licensed domestic VASP within 90 days, a step that must be completed before Binance‑related onboarding can start [2].

History of regulatory friction in the Philippines

Binance’s troubles in the Philippines date back to 2023, when the SEC warned that the exchange was not authorized to sell or offer securities because it lacked 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 ISPs to restrict the platform after the NTC order [1]. The app was later removed from the Philippine Google Play Store in early 2026, redirecting users to other regional exchanges [2]. The latest BSP clarification does not close the door on a return, but it signals that both SEC sandbox approval and a BSP VASP license are required for full market access.

Why it matters

The episode illustrates the Philippines’ layered regulatory approach: the SEC oversees securities and sandbox testing, while the BSP controls licensing for payment‑related crypto services. Binance’s strategy of partnering with a local fintech firm does not bypass the need for a VASP license, highlighting the importance of meeting both regulatory tracks for any crypto operator seeking entry. Until BlockShoals secures a partnership with a licensed domestic VASP and both firms obtain the required BSP authorization, Binance’s comeback in the Philippines remains on hold.