BlockShoals Technologies Inc. has announced its partnership with a Bangko Sentral ng Pilipinas (BSP)-licensed Virtual Asset Service Provider (VASP) for its upcoming regulatory sandbox project. This move marks a significant step in the company's effort to comply with SEC regulations while enhancing the country's cryptocurrency infrastructure.
Details of the Partnership
A VASP has been selected, and both parties are now completing the required due diligence. It is important to BlockShoals to work with a partner that is properly regulated, has strong compliance systems, and is committed to investor protection. Onboarding and integration will begin once the partnership is formally in place, and it will be announced at that time.
Marie Antonette Quiogue, Head of Legal, BlockShoals
The decision follows a meeting with the Securities and Exchange Commission (SEC) and the BSP’s Technology Risk and Innovation Supervision Department (TRISD). According to BlockShoals, integration with a BSP-accredited VASP was a requirement under the SEC’s StratBox framework approved in November 2025.
Regulatory Framework and Limitations
The SEC recently reiterated that the 90-day integration period is dedicated solely to technical development, specifically creating fiat rails for converting Philippine pesos to cryptocurrencies. Public trading or onboarding is not permitted during this phase.
The BSP has confirmed that neither BlockShoals nor its global partner, Binance, currently holds the necessary Certificate of Authority to operate as a VASP in the Philippines. Both agencies are working together to ensure regulatory compliance.
Operational Outlook
In this collaboration, BlockShoals will act as the local intermediary, while Binance will supply backend technology and security systems. The operational testing phase is set to begin in the latter half of 2026 and will last for a minimum of two years.