Philippines central bank says Binance and BlockShoals lack VASP

Binance’s attempt to re‑enter the Philippine market is stalled after the Bangko Sentral ng Pilipinas (BSP) announced that neither the global exchange nor its local partner, BlockShoals Technologies Inc., possess the necessary virtual asset service provider (VASP) license [3]. The central bank emphasized that participation in the SEC’s StratBox sandbox does not replace the separate licensing requirement.

Key takeaways

• Binance and BlockShoals lack the BSP‑issued VASP license required to operate in the Philippines [3].
• The VASP license is distinct from any approval granted by the Securities and Exchange Commission (SEC) [3].
• The SEC previously warned Binance in 2023 for operating without a license and ordered ISPs to block the platform [1].
• BSP’s statement underscores that sandbox participation alone is insufficient for regulatory compliance [3].
• Binance’s re‑entry strategy hinges on securing the missing license, a step not yet achieved [3].

Regulatory context and recent developments

The BSP’s statement, reported by local media BitPinas and echoed by CoinDesk, clarifies that Binance’s partnership with BlockShoals does not satisfy the legal requirement to function as a virtual asset service provider [3]. The VASP license, issued by the central bank, is essential for facilitating crypto payments and transaction infrastructure, and it operates independently of the SEC’s oversight of securities offerings [3].

Earlier, the Philippine SEC had already flagged Binance’s activities. In November 2023, the regulator warned that Binance was not authorized to sell or offer securities because it lacked the necessary registration [1]. By March 2024, the SEC had asked the National Telecommunications Commission to block access to Binance’s website, prompting internet service providers to restrict the platform [1]. These actions illustrate a broader crackdown on unlicensed crypto operators, which later extended to other exchanges in August 2025 [1].

Why it matters

The BSP’s clarification signals that Binance’s path to re‑establishing a foothold in the Philippines will require formal licensing, not merely participation in regulatory sandboxes. Without the VASP license, the exchange cannot legally offer crypto payment services, limiting its ability to serve Filipino users. This development also reinforces the Philippines’ dual‑track regulatory approach, where both the central bank and the SEC enforce separate compliance regimes. As regulators worldwide tighten oversight of crypto platforms, Binance’s experience in the Philippines highlights the growing complexity of navigating multiple licensing frameworks.