Binance’s plan to re-enter the Philippines through local partner BlockShoals Technologies has encountered a fresh regulatory obstacle after the country’s central bank, Bangko Sentral ng Pilipinas (BSP), stated that neither firm holds the required virtual asset service provider (VASP) license. This license is mandatory for operating crypto payment and transaction services in the country.
According to a report by BitPinas, BSP clarified that both Binance and BlockShoals lack central bank approval for VASP activity, meaning they cannot currently act as licensed virtual asset service providers under the existing framework. The announcement adds a new layer of complexity to Binance’s attempted comeback, which had previously been framed as a sandbox trial under the Philippine Securities and Exchange Commission’s (SEC) StratBox program.
BlockShoals received SEC clearance to test financial products within the sandbox, but BSP emphasized that sandbox participation does not substitute for a separate central bank license. The SEC and BSP oversee different parts of the crypto market, and while a sandbox may support innovation, a VASP license remains necessary for certain crypto services. This distinction means that even though Binance was set to provide technology, product support, security, and compliance experience via BlockShoals, the absence of a BSP license blocks the immediate launch.
The SEC has revised its sandbox terms: BlockShoals must integrate its systems with a licensed domestic VASP within 90 days before any user onboarding linked to Binance’s infrastructure can occur. The regulator also now describes Binance as a global crypto-asset service provider rather than a global VASP, signaling a careful jurisdictional stance.
Binance has a troubled regulatory history in the Philippines. The SEC previously said in 2023 that the exchange operated without proper registration, leading to a website block in 2024 by the National Telecommunications Commission and removal of the Binance app from the Philippine Google Play Store in early 2026. The new BSP statement shows that for Binance’s return to proceed, both SEC and BSP requirements must be met—the sandbox approval alone will not suffice. Binance’s Philippine comeback now hinges on establishing licensed local rails before it can offer services tied to its global infrastructure.
