Binance Reentry Plan Faces Fresh Philippines Regulatory Hurdle

TLDR

• Binance faces new Philippines hurdle over missing VASP approval

• BSP says Binance and BlockShoals lack required local licenses

  

• SEC sandbox approval alone cannot clear Binance’s market return

• BlockShoals must link with a licensed VASP before onboarding

• Binance reentry now depends on BSP and SEC compliance steps

Binance faces a fresh regulatory hurdle in the Philippines after the central bank questioned its local reentry route. The Bangko Sentral ng Pilipinas said Binance and BlockShoals Technologies lack required VASP authority. The update complicates a planned comeback through the SEC’s supervised sandbox.

BSP Says Binance And BlockShoals Lack VASP Approval

The BSP confirmed that neither Binance nor BlockShoals holds a Certificate of Authority as a VASP. Therefore, both firms cannot provide regulated virtual asset payment or transaction services locally. The central bank issued the clarification after the SEC updated its sandbox wording.

The BSP also said SEC sandbox participation does not replace separate central bank approval. This means a firm can test products but still need another license. Transaction rails remain under central bank rules when they involve covered services.

The central bank now coordinates with the SEC on the BlockShoals and Binance arrangement. It cited BSP Circular No. 1153 and SEC Memorandum Circular No. 9 as relevant frameworks. Both agencies operate separate sandboxes, but they still require legal compliance.

SEC Sandbox Terms Add Local VASP Requirement

The SEC earlier cleared BlockShoals to test its crypto intermediary model under StratBox. However, the revised terms describe Binance as a global crypto asset service provider. The update avoids calling Binance a global VASP in the Philippine setup.

Under the revised plan, BlockShoals must connect with a licensed domestic VASP within 90 days. This integration must happen before any user onboarding through Binance infrastructure begins. As a result, the project now depends on licensed local rails.

BlockShoals secured initial SEC clearance on November 12, 2025, under its approved framework. The live testing phase should begin in the second half of 2026. The test period will run for at least two years under regulatory oversight.

Binance Reentry Plan Faces Licensing Test

Binance has faced regulatory pressure in the Philippines for several years. In 2023, the SEC said the exchange operated without proper registration and licensing. Authorities later moved against access to the platform across local digital channels.

The National Telecommunications Commission blocked the Binance website in 2024 after an SEC request. Then, in early 2026, the Binance app disappeared from the Philippine Google Play Store. These actions kept the exchange outside normal local access channels.

The latest BSP statement does not end the Binance reentry plan. It shows that sandbox approval alone cannot restore market access. Binance and BlockShoals must satisfy both SEC and BSP requirements before local operations can proceed.

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