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Philippine Central Bank Sets Conditions for Binance Return

Binance wants to return to the Philippines through a local partner, but the central bank is setting strict licensing requirements. Without a VASP license, access to the market remains uncertain.

By Zenz van der Wielen
• 1 min read
Philippine Central Bank Sets Conditions for Binance Return

Key Takeaways

  • Binance is trying to re-enter the Philippine crypto market through BlockShoals, but it still does not have the required VASP license there.
  • The BSP says an SEC sandbox is not a substitute for an official license, and companies have to meet both sets of rules.
  • BlockShoals has 90 days to connect with a licensed domestic VASP before users can be allowed in through Binance.

Binance is trying once again to get a foothold in the Philippine crypto market through a local partner, but the country’s central bank is drawing a clear line. Neither Binance nor local fintech partner BlockShoals Technologies Inc. has the required license to operate as a Virtual Asset Service Provider (VASP), according to the Bangko Sentral ng Pilipinas (BSP).

Licensing Requirements and Rules in the Philippines

The BSP license is essential for handling crypto payments and transactions, and it is separate from the approval granted by the Securities and Exchange Commission (SEC). While BlockShoals has some room to test services under the SEC's sandbox program, StratBox, the central bank stresses that being part of this sandbox is not a replacement for an official VASP license. Companies have to comply with both regulatory frameworks to operate legally.

Past Activity and Current Limits

Binance was active in the Philippines before, but in 2023 it was found to be operating without a license. That led internet providers and app stores to be ordered to block access to the exchange. Since then, the SEC has tightened the framework, and Binance is now labeled a global crypto-asset service provider instead of a global VASP, which is a narrower classification. BlockShoals also has to integrate with a licensed domestic VASP within 90 days before users can be allowed in through Binance.

Why This Matters for European Crypto Investors

This situation shows how complicated it can be to enter regulated markets, where different agencies and licenses all come into play. European investors can take away that even major crypto companies like Binance face strict local rules, which can affect the availability and use of crypto services around the world. It also highlights how important it is to follow both financial and tech regulations across different jurisdictions.

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