Binance is trying to enter the Philippine market through a local partner. Regulators are making clear that it won’t be easy.
The country’s central bank said that neither the world’s largest cryptocurrency exchange nor its local partner, BlockShoals Technologies Inc., have the necessary license to operate as a virtual asset service provider (VASP) in the country, BitPinas media reported.
The license, issued by the Bangko Sentral ng Pilipinas, is essential to facilitate cryptocurrency payments and transactions and is independent of any approval granted by the country’s Securities and Exchange Commission (SEC).
CoinDesk has reached out to Binance for comment.
Binance has previously been active in the country. But in 2023, the SEC noted that it was operating without a license. It ordered Internet service providers and app stores to block the exchange the following year.
Last month, Binance said it is working with BlockShoals, a local fintech company that received initial clearance from the SEC in November under the regulator’s sandbox framework. The sandbox, called StratBox (Strategic Sandbox), is a controlled and supervised environment for fintech and crypto companies to test financial services.
According to BitPinas, the central bank has explicitly stated that participation in the sandbox is not a substitute for central bank licensing, and entities wishing to operate in the country must comply with both frameworks independently.
The report also says that the SEC revised its language in the sandbox agreement, describing Binance as a global crypto asset services provider rather than a global VASP, a more limited designation. The revised terms also require BlockShoals to integrate its systems with a licensed domestic VASP within 90 days before onboarding any users through Binance’s infrastructure can begin.
Binance is back at the door. It remains to be seen if he will enter and on what terms.
