Binance Philippines return hits wall as BSP flags license gap

Binance’s plan to reenter the Philippines through local partner BlockShoals Technologies has faced a new regulatory hurdle after the country’s central bank said both firms lack required licenses.

According to BitPinas, Bangko Sentral ng Pilipinas said neither Binance nor BlockShoals currently holds a virtual asset service provider license. The license is needed to operate crypto payment and transaction services in the country.

BSP says Binance and BlockShoals lack licenses

The BSP clarified that the two firms do not hold the central bank approval required for VASP activity. That means they cannot operate as licensed virtual asset service providers under the current framework.

The statement adds a new layer to Binance’s attempted comeback in the Philippines. Binance had earlier said it was working with BlockShoals under the Philippine Securities and Exchange Commission’s StratBox sandbox.

BlockShoals received SEC clearance under the sandbox structure. However, the BSP said sandbox participation does not remove the need for a separate central bank license.

That distinction matters because the SEC and BSP oversee different parts of the market. A sandbox test may support innovation, but a VASP license remains needed for certain crypto services.

SEC sandbox approval is not enough

The SEC’s StratBox framework allows selected firms to test financial products in a supervised 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 wording around Binance. The report said the regulator described Binance as a global crypto-asset service provider rather than a global VASP.

Binance remains blocked in the Philippines

Binance has a long regulatory history in the Philippines. In 2023, the SEC said the exchange operated without proper registration and licensing.

Philippine authorities later moved to restrict access. The National Telecommunications Commission blocked Binance’s website in 2024 after the SEC requested action.

As previously reported by crypto.news, the Binance app was also 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 sought a regulated path back into the market. The new BSP statement shows that route still depends on licensing compliance.

Reentry now depends on licensed local rails

The latest update does not close the door on Binance’s return. It shows that the exchange and its partner must meet both SEC and BSP requirements before operating locally.

For BlockShoals, the next key step is its required link with a licensed domestic VASP. That integration must happen before any Binance-backed onboarding can begin.

The case also shows how the Philippines is separating sandbox testing from full market access. Regulators appear open to supervised trials, but they continue to require licensing for live crypto services.

For Binance, the message is clear. Its Philippine comeback will not depend on a sandbox approval alone. It must move through licensed local rails before users can access services tied to its infrastructure.