# BSP says Binance and BlockShoals lack VASP licenses, coordination

**Published:** 2026-06-11T20:58:34.153Z  
**Topic:** Philippines' central bank says Binance and its local partner lack licenses to operate  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/74caa005-a257-40cc-b5e3-741a663f01c7

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 Bangko Sentral ng Pilipinas (BSP) confirmed Binance and BlockShoals lack a VASP license [2].  
- SEC sandbox participation does not exempt entities from BSP licensing, and BlockShoals must integrate with a licensed domestic VASP before user onboarding can begin [4].  
- The SEC has revised its sandbox terms, designating Binance as a global crypto‑asset service provider (CASP) partner rather than a VASP, and requires a 90‑day integration with a local VASP [2].  
- Coordination between the BSP and SEC is ongoing to resolve the licensing gap, referencing BSP Circular No. 1153 (2022) and SEC Memorandum Circular No. 9 (2024) [2].  
- Prior SEC advisories have led to ISP blocks on Binance’s website, and the current effort marks the latest attempt to comply with Philippine regulations [1].

## BSP licensing gap and SEC sandbox framework  

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].

## Coordination between BSP and SEC  

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].

## Why it matters  

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.

## Sources
1. CoinTelegraph — [Binance eyes Philippines return through SEC sandbox partnership](https://cointelegraph.com/news/binance-philippines-return-sec-sandbox-blockshoals)
2. Bitpinas — [Exclusive: BSP Says Binance, BlockShoals Lack VASP Licenses; Coordinating With SEC on Sandbox | BitPinas](https://bitpinas.com/regulation/exclusive-bsp-binance-blockshoals-sec)
3. Blockzeit — [Philippine Central Bank Says Binance And Partner Lack VASP License - Blockzeit](https://blockzeit.com/philippine-central-bank-binance-and-partner-lack-vasp-license/)
4. Crypto — [Binance Philippines return hits wall as BSP flags license gap](https://crypto.news/binance-philippines-return-hits-wall-as-bsp-flags-license-gap/)

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Cite as: TrendWatcher, "BSP says Binance and BlockShoals lack VASP licenses, coordination", https://www.trendwatcher.in/article/74caa005-a257-40cc-b5e3-741a663f01c7