Key facts
- Binance and its local partner BlockShoals Technologies Inc. lack the necessary license to operate as a Virtual Asset Service Provider (VASP) in the Philippines.
- The BSP confirmed that participation in the SEC's regulatory sandbox does not exempt entities from central bank licensing.
- Binance has been subject to access restrictions in the Philippines since March 2024.
- The SEC has designated Binance as a global CASP partner for BlockShoals' sandbox testing.
- Sandbox operational testing is scheduled to begin in the second half of 2026.
The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has stated that cryptocurrency exchange Binance and its local partner, BlockShoals Technologies Inc., do not possess the required licenses to operate as Virtual Asset Service Providers (VASPs) in the country. This announcement follows previous actions by the Philippine Securities and Exchange Commission (SEC), which had warned the public about Binance in November 2023 and requested the National Telecommunications Commission (NTC) to block access to the platform in March 2024 due to licensing concerns. The BSP clarified that participation in the SEC's regulatory sandbox framework, known as StratBox, does not exempt entities from obtaining separate central bank licensing. The SEC recently revised BlockShoals' testing terms to designate Binance as a global crypto-asset service provider (CASP) partner, with operational testing expected to commence in the second half of 2026 and last for at least two years. During this phase, BlockShoals will act as the local intermediary, supported by Binance's technology, security, and compliance infrastructure. Access to Binance has been restricted in the Philippines intermittently since 2024. The SEC has also issued advisories against other crypto exchanges, including OKX, Bybit, KuCoin, and Kraken, in August 2025, and more recently named platforms like dYdX and Aevo in an investor alert on April 21, 2026. The BSP and SEC are reportedly coordinating their regulatory efforts concerning the Binance-BlockShoals partnership.