Binance is attempting to re-enter the Philippine market through local partner BlockShoals. However, the Bangko Sentral ng Pilipinas (BSP) has clarified that neither Binance nor BlockShoals holds the required Virtual Asset Service Provider (VASP) license. Binance previously operated without a license, leading to an SEC order blocking the exchange in 2024. In November, BlockShoals received SEC approval under the StratBox sandbox, but the central bank emphasized that sandbox participation does not replace VASP licensing. The SEC also revised its terminology from 'global VASP' to 'global crypto-asset service provider,' and requires BlockShoals to integrate with a licensed domestic VASP within 90 days before onboarding users. This regulatory complexity underscores the challenge Binance faces in its Philippine comeback.

Key facts

• Binance and BlockShoals lack the BSP-issued VASP license required for crypto operations.
• Binance previously operated unlicensed; SEC ordered blocking in 2024.
• SEC sandbox approval does not replace central bank licensing.
• BlockShoals must integrate with a licensed domestic VASP within 90 days.
• SEC revised Binance's designation from global VASP to crypto-asset service provider.