The Bangko Sentral ng Pilipinas (BSP) has confirmed that Binance and its local partner, BlockShoals Technologies Inc., do not possess the required Certificate of Authority to operate as a Virtual Asset Service Provider (VASP).
In a statement, the BSP emphasized that participating in the Securities and Exchange Commission (SEC) regulatory sandbox does not exempt companies from obtaining necessary licenses from the central bank.
Clarification on Regulatory Frameworks
The BSP and SEC operate separate regulatory sandboxes, each governed by its own set of rules. The central bank stated that compliance with applicable laws and regulations remains mandatory for all sandbox participants.
While these frameworks are administered independently, both share the principle that sandbox participants must continue to comply with applicable laws, rules, and regulations. The BSP and SEC are coordinating on this matter.
Bangko Sentral ng Pilipinas
As part of its coordination efforts with the SEC, the BSP referred to relevant guidelines established in BSP Circular No. 1153, series of 2022, and SEC Memorandum Circular No. 9, series of 2024.
SEC's Revised Terms for BlockShoals
The SEC has clarified that the BlockShoals’ StratBox framework will allow access to select products and services through Binance, now classified as a global crypto-asset service provider (CASP) partner.
- BlockShoals must integrate its systems with a licensed domestic VASP within 90 days.
- Successful integration will allow BlockShoals to proceed with its testing plan and begin user onboarding.
The onboarding process will be regulated under Republic Act No. 11765, ensuring consumer protections are in place.
Looking Ahead: Operational Timeline
BlockShoals received initial clearance from the SEC on November 12, 2025, to function under a crypto-asset intermediary model. Testing within the SEC sandbox is set to begin in the latter half of 2026 and will last for a minimum of two years.
While BlockShoals serves as the registered intermediary, Binance is tasked with providing the necessary technology and compliance infrastructure.
This development follows previous restrictions where local internet providers and app stores blocked access to Binance from 2024 to 2026 due to SEC advisories.