Binance has resumed access for users in the Philippines through an arrangement with BlockShoals Technologies that operates under the Securities and Exchange Commission's Strategic Sandbox framework. The structure positions BlockShoals as a crypto asset intermediary connecting Philippine users to Binance's global trading platform, while explicitly excluding peso transfers and activities regulated by the Bangko Sentral ng Pilipinas. The arrangement represents Binance's return to the Philippine market after the SEC warned the public in November 2023 that Binance lacked required authorization and requested the National Telecommunications Commission to block access to the platform in March 2024.
BlockShoals Operates Under SEC Strategic Sandbox Framework
The arrangement places Binance's local access under the SEC's crypto asset service provider framework through the Strategic Sandbox, known as StratBox. BlockShoals acts as a crypto asset intermediary introducing Philippine users to Binance's global trading platform rather than operating as a central bank-licensed virtual asset service provider.
Marie Antonette Quiogue, BlockShoals head of legal, stated the activity being offered is trading access, which she described as falling under the SEC's jurisdiction. "Trading, the activity of trading, is clearly under the jurisdiction of the SEC," Quiogue said. "Binance and BlockShoals, we are not moving pesos, which is clearly under the jurisdiction of the BSP."
The StratBox framework allows firms to test regulated crypto activity under a supervised structure.
BSP States Neither Company Holds Virtual Asset Service Provider Authorization
The Bangko Sentral ng Pilipinas stated neither Binance nor BlockShoals is authorized to operate as a virtual asset service provider. Neither company has approval from the central bank to handle peso transfers, custody activities, or other services within the BSP's regulatory scope.
The BSP stated that sandbox participation does not override licensing obligations. "Participation in the regulatory sandbox does not exempt an entity from complying with applicable laws, rules, and regulations, including any licensing requirements imposed by relevant regulators," the central bank said, adding that it was coordinating with the SEC on the matter.
Quiogue acknowledged that neither Binance nor BlockShoals had applied for a local VASP license. She argued the absence of a VASP license does not prevent the companies from offering services that remain under SEC supervision.
Arrangement Separates Trading Access From Peso Movement Functions
The current structure separates trading access from peso movement, creating a path under SEC oversight while leaving central bank-regulated activities outside the arrangement's scope. The structure does not authorize Binance or BlockShoals to move pesos.
Quiogue described the regulatory boundary directly: "If BlockShoals and Binance will be offering any product that is regulated by any other government agency, you have to get an authority from them."
The segmented regulatory model addresses markets where responsibilities are split between securities regulators and central banks. Trading access, asset listings, and crypto intermediation fall under the SEC, while fiat transfers, payment rails, custody, and virtual asset service provider licensing fall under the BSP.
Binance Previously Faced SEC Warnings and Access Restrictions
In November 2023, the SEC warned the public that Binance was not authorized to sell or offer securities in the Philippines because it had not obtained the required license and registration. In March 2024, the commission said it had asked the National Telecommunications Commission to block access to Binance's website and related webpages. Local internet providers later began restricting access.
The platform's renewed availability indicates Binance is pursuing a formal route back into the market through the SEC-linked structure. The BSP's statement makes clear that central bank authorization has not been granted.
FAQ
What regulatory framework does the Binance-BlockShoals arrangement operate under in the Philippines?
The arrangement operates under the Securities and Exchange Commission's Strategic Sandbox framework, known as StratBox. BlockShoals acts as a crypto asset intermediary under the SEC's crypto asset service provider framework, introducing Philippine users to Binance's global trading platform.
Does Binance or BlockShoals have authorization to handle peso transfers in the Philippines?
No. The Bangko Sentral ng Pilipinas stated neither Binance nor BlockShoals is authorized to operate as a virtual asset service provider, meaning neither company has approval to handle peso transfers, custody activities, or other services within the central bank's regulatory scope.
What restrictions did Binance face in the Philippines before this arrangement?
In November 2023, the SEC warned the public that Binance lacked required authorization to sell or offer securities in the Philippines. In March 2024, the SEC requested the National Telecommunications Commission to block access to Binance's website and related webpages, after which local internet providers began restricting access to the platform.
