Binance’s attempt to return to the Philippines through local partner BlockShoals Technologies has hit another regulatory barrier. The Bangko Sentral ng Pilipinas, or BSP, said neither Binance nor BlockShoals currently holds a virtual asset service provider license, a requirement for operating crypto payment and transaction services in the country.
BSP draws a clear line on licensing
According to BitPinas, the central bank said both firms lack the approval needed for VASP activity under the current rules. That means they cannot operate as licensed virtual asset service providers in the Philippine market. The statement adds pressure to Binance’s latest effort to reestablish a presence after earlier saying it was working with BlockShoals through the Philippine Securities and Exchange Commission’s StratBox sandbox.
BlockShoals has already secured SEC clearance under that sandbox structure. BSP’s position is that sandbox participation does not remove the need for a separate central bank license. The distinction is material because the SEC and BSP supervise different parts of the market. A supervised test may be allowed, but some live crypto services still require a VASP license.
Sandbox access does not unlock live onboarding
The SEC’s StratBox framework allows selected firms to test financial products in a controlled setting. Binance and BlockShoals had planned to use that route to test a local platform experience. In the SEC’s earlier description, BlockShoals would act as the domestic intermediary, while Binance would supply technology, product support, security, and compliance experience.
BitPinas reported that the revised sandbox terms require BlockShoals to integrate its systems with a licensed domestic VASP within 90 days. Until that happens, user onboarding through Binance-linked infrastructure cannot begin. The report also said the regulator adjusted its wording around Binance, describing it as a global crypto-asset service provider rather than a global VASP.
Binance remains restricted in the local market
Binance has faced regulatory friction in the Philippines for years. In 2023, the SEC said the exchange had been operating without proper registration and licensing. Philippine authorities later moved to limit access. In 2024, the National Telecommunications Commission blocked Binance’s website after the SEC requested action.
crypto.news had also reported earlier that the Binance app was removed from the Philippine Google Play Store in early 2026. Users searching for Binance were redirected to other regional exchange apps. Separate reporting said Binance partnered with BlockShoals in May as it looked for a regulated route back into the country. The BSP statement shows that path still depends on full licensing compliance.
Return now hinges on licensed local rails
The latest update does not shut the door completely on Binance’s return, but it does set the conditions plainly. Binance and its local partner must satisfy both SEC and BSP requirements before operating in the country. For BlockShoals, the next step is clear: complete the required integration with a licensed Philippine VASP. Only after that can Binance-backed onboarding move ahead.
The case also highlights how Philippine regulators are separating sandbox testing from full market access. Supervised trials may be permitted, while live crypto services remain tied to licensing. For Binance, sandbox approval on its own is not enough to restore access.