Binance's Philippines Return Plan Stumbles on BSP License Gap

Binance's effort to reenter the Philippines through a local partnership hit a fresh regulatory roadblock after the Bangko Sentral ng Pilipinas (BSP) confirmed that neither the exchange nor its partner, BlockShoals Technologies, holds a Virtual Asset Service Provider (VASP) license. The BSP said the license is mandatory for businesses offering crypto-related payment and transaction services in the country.

BlockShoals had won approval to join the Philippine Securities and Exchange Commission's (SEC) StratBox regulatory sandbox. The BSP clarified that participation in the sandbox does not exempt companies from its own licensing requirements. A VASP license remains necessary for activities that fall under the central bank's jurisdiction, the regulator stated.

Revised sandbox conditions now require BlockShoals to integrate its operations with a licensed domestic VASP within 90 days before it can onboard users through Binance infrastructure. Under the proposed arrangement, BlockShoals would act as the local intermediary while Binance provides technology, product infrastructure, security systems, and compliance support.