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The Bangko Sentral ng Pilipinas confirms Binance and BlockShoals do not hold VASP licenses, explains sandbox limits and ongoing coordination with the SEC.
Binance’s attempt to re‑enter the Philippine market through its local partner BlockShoals Technologies has hit a regulatory roadblock: the central bank says neither entity holds a Certificate of Authority to operate as a Virtual Asset Service Provider (VASP) [2]. The BSP also clarified that participation in the Securities and Exchange Commission’s (SEC) sandbox does not replace the separate licensing requirements imposed by the central bank.
Key takeaways
The BSP’s statement, released on June 12 2026, emphasized that both Binance and BlockShoals “do not hold a Certificate of Authority to operate as a Virtual Asset Service Provider” and that sandbox participation “does not exempt an entity from separate central bank licensing requirements” [2]. The central bank cited its own circular (No. 1153, series 2022) and the SEC’s memorandum (No. 9, series 2024) as the governing frameworks, underscoring that each regulator maintains an independent sandbox and that compliance with both sets of rules is mandatory.
The SEC’s sandbox, known as “StratBox,” originally cleared BlockShoals in November 2025 to act as a crypto‑asset intermediary, allowing the partnership to test selected products with Binance providing backend technology [3]. However, the SEC recently amended its press release to clarify that Binance is a global CASP partner, not a VASP, and that the first testing phase requires BlockShoals to link its systems with an unnamed licensed domestic VASP within 90 days before any user onboarding can occur [2][4]. The sandbox testing phase is slated to begin in the second half of 2026 and will run for at least two years [2].
Both regulators acknowledge the need for joint oversight. The BSP said it is “currently coordinating with the SEC regarding the BlockShoals and Binance partnership” and highlighted that while the sandbox frameworks are administered independently, they share the principle that participants must continue to comply with all applicable laws [2]. This coordination aims to bridge the regulatory divide between the BSP’s jurisdiction over VASPs—entities that facilitate crypto‑fiat exchanges, transfers, and custody—and the SEC’s focus on securities‑related activities such as trading venues and ICOs [3].
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No, Binance remains blocked in the Philippines, and the BSP has confirmed that neither it nor its partner holds the necessary licenses to operate.
No, the BSP clarified that participation in the SEC's StratBox sandbox does not exempt firms from the requirement to obtain a separate central bank VASP license.
BlockShoals must integrate its systems with a licensed domestic VASP within 90 days as part of the revised sandbox terms before any user onboarding can occur.
The licensing gap underscores the complexity of the Philippines’ dual‑regulatory approach, where the BSP controls payment‑system impacts and the SEC safeguards investor protection. Until Binance and BlockShoals secure a VASP license, they cannot legally offer crypto payment or transaction services, limiting their ability to onboard Filipino users despite SEC sandbox approval. Ongoing coordination between the two agencies may result in a pathway for compliance, but the requirement to integrate with a licensed domestic VASP remains a critical hurdle. The outcome will shape how global crypto exchanges can operate in the Philippines and could set precedents for other jurisdictions with overlapping regulatory regimes.
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Jun 12, 2026 · How we report