Binance Philippines return hits wall as BSP flags license gap

The Bangko Sentral ng Pilipinas said neither Binance nor its local partner BlockShoals Technologies holds the required virtual asset service provider license, according to BitPinas. That license is necessary for operating crypto payment and transaction services in the country.

The statement adds a new regulatory hurdle to Binance's attempted reentry. Binance had earlier said it was working with BlockShoals under the Philippine Securities and Exchange Commission's StratBox sandbox program. BlockShoals received SEC clearance under the sandbox structure.

The BSP said sandbox participation does not remove the need for a separate central bank license. The SEC and BSP oversee different segments of the market. A sandbox test permits supervised product trials. The BSP's statement made clear that a VASP license remains mandatory for live crypto services.

The SEC's StratBox framework allows selected firms to test financial products in a controlled setting. Binance and BlockShoals planned to use that route to test a local platform experience. The SEC previously said BlockShoals would serve as the local intermediary while Binance would provide 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. User onboarding through Binance infrastructure cannot begin before that step. The SEC also revised its description of Binance, referring to it as a global crypto-asset service provider rather than a global VASP, the report said.

Binance has a long regulatory history in the Philippines. The SEC said in 2023 that the exchange operated without proper registration and licensing. The National Telecommunications Commission blocked Binance's website in 2024 after the SEC requested action. The Binance app was removed from the Philippine Google Play Store in early 2026, as previously reported by crypto.news. Users searching for Binance were redirected to other regional exchange apps.

Separate reporting said Binance partnered with BlockShoals in May as it sought a regulated path back into the market. The BSP statement made clear that the route still depends on meeting licensing requirements from both the SEC and the BSP.

For BlockShoals, the immediate next step is the required link with a licensed domestic VASP. That integration must happen before any Binance-backed user onboarding can begin. The 90-day window set by the SEC defines the timeline.

The BSP statement did not permanently block a return through BlockShoals. It clarified that sandbox approval alone does not grant the right to offer VASP services. Binance's comeback will need to move through licensed local rails before users can access services tied to its infrastructure.