Philippines Central Bank Says Binance and Local Partner Lack Required Crypto Licenses

Binance’s plans to reenter the Philippine crypto market have encountered a new challenge after the country’s central bank confirmed that neither Binance nor its local partner, BlockShoals Technologies Inc., currently holds the required license to operate as a virtual asset service provider (VASP).

The clarification comes as Binance seeks to expand its presence in the country through a partnership with BlockShoals, a local fintech company.

Central Bank Highlights Separate Licensing Requirements

The Bangko Sentral ng Pilipinas (BSP) said that companies offering crypto-related payment and transaction services must obtain a VASP license from the central bank. Regulators emphasized that participation in the Securities and Exchange Commission’s StratBox sandbox program does not replace the need for a separate BSP license.

Authorities noted that businesses must comply with both regulatory frameworks independently before offering crypto services to users.

Sandbox Approval Does Not Grant Full Operating Rights

BlockShoals received initial approval under the SEC’s StratBox regulatory sandbox in November. The program allows fintech and crypto firms to test products in a supervised environment.

However, regulators stressed that sandbox participation alone does not authorize commercial crypto operations.

Additional Conditions for Market Entry

According to updated regulatory terms, BlockShoals must integrate its systems with a licensed domestic VASP within 90 days before onboarding users through Binance-related infrastructure. Regulators have also revised descriptions of Binance’s role within the arrangement.

Binance previously faced restrictions in the Philippines after regulators determined it was operating without the required licenses. While the company is pursuing a return to the market, approval will depend on meeting all licensing and compliance requirements set by Philippine authorities.