The BSP said the license is required for certain crypto-related payment and transaction services, regardless of participation in the Philippine Securities and Exchange Commission’s StratBox r
The BSP said the license is required for certain crypto-related payment and transaction services, regardless of participation in the Philippine Securities and Exchange Commission’s StratBox regulatory sandbox. Under the proposed partnership, BlockShoals would serve as the local intermediary while Binance would provide technology and compliance support, although BlockShoals must first integrate with a licensed domestic VASP before onboarding users.
Binance’s plans to reestablish a presence in the Philippines encountered a new regulatory challenge after the country’s central bank confirmed that neither Binance nor its local partner, BlockShoals Technologies, currently possesses the licenses required to provide certain cryptocurrency services in the country.
According to reports from local crypto publication BitPinas, the Bangko Sentral ng Pilipinas (BSP) stated that both companies lack a Virtual Asset Service Provider (VASP) license, which is required for businesses offering virtual asset-related payment and transaction services in the Philippines. The clarification comes as Binance wants to return to the market through a partnership with BlockShoals under a regulatory sandbox program overseen by the Philippine Securities and Exchange Commission (SEC).
While BlockShoals received approval to participate in the SEC’s Strategic Sandbox (StratBox) initiative, the BSP explained that participation in the sandbox does not exempt companies from obtaining separate authorization from the central bank. The regulator said that a VASP license is still necessary for firms intending to conduct activities that fall in the BSP’s jurisdiction, regardless of any approvals granted through the SEC’s testing framework.
The SEC’s StratBox program is designed to allow selected companies to test innovative financial products and services in a controlled environment, while the BSP is responsible for overseeing payment systems and virtual asset service providers. As a result, approval from one regulator does not automatically satisfy the requirements of another.
Under the proposed arrangement, BlockShoals would act as the local intermediary, while Binance would contribute technology, product infrastructure, security systems, and compliance expertise. However, revised sandbox conditions reportedly require BlockShoals to integrate its operations with a licensed domestic VASP within 90 days before onboarding users through Binance-related infrastructure.
The SEC also adjusted its description of Binance in official documentation. According to reports, the regulator now refers to Binance as a global crypto-asset service provider rather than a global virtual asset service provider.
