The Bangko Sentral ng Pilipinas (BSP) confirmed that neither Binance nor its local partner, BlockShoals Technologies Inc., holds a Certificate of Authority to operate as a Virtual Asset Service Provider (VASP).
The central bank stated that participation in the Securities and Exchange Commission (SEC) regulatory sandbox does not exempt an entity from separate central bank licensing requirements to facilitate transaction rails. This announcement follows a recent SEC clarification that revised BlockShoals’ testing terms to designate Binance as a global crypto-asset service provider (CASP) partner rather than a global VASP. (Full copy of the statement to be shared on the BitPinas newsletter this Friday, June 12, 2026.)
Central Bank Licensing Requirements
According to a statement from the BSP, the central bank and the SEC maintain separate regulatory sandbox frameworks that are administered independently. The BSP emphasized that sandbox participants must continue to comply with all applicable laws, rules, and regulations, including any separate licensing mandates imposed by relevant regulators.
BSP Coordinating with the SEC
The central bank noted that it is currently coordinating with the SEC regarding the BlockShoals and Binance partnership. The BSP cited BSP Circular No. 1153, series of 2022, and SEC Memorandum Circular No. 9, series of 2024, as the governing guidelines for these frameworks.
“While these frameworks are administered independently, both share the principle that sandbox participants must continue to comply with applicable laws, rules, and regulations. The BSP and SEC are coordinating on this matter.”
Bangko Sentral ng Pilipinas
SEC Sandbox Corrections and Mandates: Blockshoals, Binance must integrate with local VASP
The SEC recently revised its official press release to clarify that the BlockShoals “StratBox” framework will provide access to selected products and services through Binance as a global CASP partner. The commission stated that the initial stage of testing requires BlockShoals to integrate its systems with an unnamed licensed domestic VASP over a 90-day period.
Upon the successful completion of this integration framework, BlockShoals will proceed with its approved testing plan and begin user onboarding through the Binance infrastructure. The SEC noted that the onboarding process remains subject to regulatory oversight and consumer safeguards under Republic Act No. 11765, also known as the Financial Products and Services Consumer Protection Act of 2022.
Operational Timeline and Background
BlockShoals secured initial clearance from the SEC en banc on Nov. 12, 2025, to operate under a crypto-asset intermediary model. The live operational testing phase inside the SEC sandbox is scheduled to commence in the second half of 2026 and will run for a minimum of two years.
Under the agreement, BlockShoals functions as the locally registered intermediary, while Binance provides backend technology infrastructure, security systems, and compliance capabilities.
The sandbox entry follows prior enforcement actions where local internet service providers and digital application stores blocked access to Binance between 2024 and 2026 following SEC advisories.
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This article is published on BitPinas: Exclusive: BSP Says Binance, BlockShoals Lack VASP Licenses; Coordinating With SEC on Sandbox
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