Binance Could Resume Serving Crypto Users in the Philippines by Complying With SEC Regulations
Binance Allowed to Resume Crypto Trading Access in the Philippines Through BlockShoals Partnership
Binance has regained the opportunity to serve crypto users in the Philippines through a partnership with local technology firm BlockShoals Technologies. However, both Binance and BlockShoals are still not authorized to handle Philippine peso transfers or offer services regulated by the country’s central bank.
Marie Antonette Quiogue, Head of Legal at BlockShoals, said Binance’s operations in the Philippines currently fall under the Crypto Asset Service Provider (CASP) regulatory framework overseen by the Philippine Securities and Exchange Commission (SEC). Under this arrangement, BlockShoals acts as an intermediary connecting local users to Binance’s global crypto trading platform.
The move is part of Binance’s strategy to reenter the Philippine market after facing regulatory restrictions in 2024 due to licensing concerns. BlockShoals is also participating in the SEC’s regulatory testing program known as Strategic Sandbox (StratBox).
However, the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, stated that neither Binance nor BlockShoals currently holds a Virtual Asset Service Provider (VASP) license, which is required for certain digital asset-related services.
The BSP also emphasized that participation in a regulatory sandbox does not exempt companies from complying with existing laws or obtaining licenses required by other regulators.
Responding to this, Quiogue acknowledged that Binance and BlockShoals have not applied for a VASP license. However, she argued that crypto trading activities fall under SEC jurisdiction rather than the central bank.
She explained that Binance and BlockShoals are not handling Philippine peso transfers, meaning their current services remain within the SEC’s regulatory scope.
If the companies plan to offer other products regulated by different government agencies in the future, they will need to obtain additional approvals from the relevant authorities.
Binance first came under regulatory pressure in the Philippines in November 2023 after the SEC stated that the exchange was not authorized to offer investment or securities-related services in the country.
In March 2024, the SEC requested the Philippine telecommunications regulator to block access to Binance’s website. Following the order, several local internet providers began restricting access to the platform.
Although Binance was previously blocked, the platform is now reportedly accessible again to users in the Philippines.
