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Binance’s plan to re‑enter the Philippines with local partner BlockShoals hits a regulatory roadblock as the BSP says neither firm holds a VASP licence.
Binance’s attempt to return to the Philippine market through fintech partner BlockShoals Technologies has been stalled by the Bangko Sentral ng Pilipinas (BSP), which says neither company holds the required virtual asset service provider (VASP) licence [2]. The central bank’s clarification adds a new hurdle to a strategy that had previously relied on a Securities and Exchange Commission (SEC) sandbox approval.
Key takeaways
The Philippine regulatory framework splits oversight of crypto activities between two bodies. The SEC manages securities‑related aspects and runs the StratBox sandbox, where BlockShoals secured “In‑Principle” approval in November 2025 and full notice of approval on 14 April 2026 to test crypto‑asset products [3][4]. However, the BSP controls the VASP licence, which authorises firms to provide virtual‑asset payment and transaction services. The BSP’s statement on 11 June 2026 makes clear that participation in the SEC sandbox does not satisfy the VASP licence requirement [2][3].
Binance’s partnership with BlockShoals was presented as a pathway back into the market after the exchange’s website was blocked in March 2024 following the SEC’s earlier warning that Binance operated without proper registration [1][2]. The plan envisioned Binance supplying technology, security, and compliance expertise while BlockShoals handled local operations. Yet, without a BSP‑issued VASP licence, the arrangement cannot move beyond testing, and the BSP has imposed a 90‑day deadline for BlockShoals to link its systems to a licensed domestic VASP before any user onboarding can begin [2][4].
The BSP’s insistence on a separate VASP licence underscores a broader regulatory stance: sandbox participation is a limited testing phase, not a shortcut to full market entry. For Binance, the path forward will likely involve direct engagement with the BSP to obtain a VASP licence, a process complicated by the central bank’s three‑year moratorium on new VASP applications [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.
For other crypto firms eyeing the Philippines, the case highlights the need to satisfy both SEC sandbox criteria and BSP licensing rules. The dual‑regulator model means that securing approval from one agency does not guarantee operational permission, and failure to meet either set of requirements can result in service blocks, as seen with Binance’s website and app removals in 2024 and 2026 respectively [1][2].
The regulatory deadlock illustrates the challenges global crypto exchanges face when navigating fragmented oversight in emerging markets. The BSP’s decision reinforces the importance of local licensing for crypto‑payment infrastructure, signaling to other platforms that partnership with a locally approved fintech is insufficient without a VASP licence. As the Philippines continues to develop its crypto regulatory regime, the outcome of Binance’s licensing negotiations will set a precedent for how foreign exchanges can legally operate and offer services to Filipino users.
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Jun 12, 2026 · How we report