The exchange's Philippine return relies on an SEC sandbox arrangement that BlockShoals says permits trading access without a local VASP license.
Binance is allowed to provide crypto trading access to users in the Philippines through its arrangement with BlockShoals Technologies, but neither company is authorized to handle peso transfers or perform other activities regulated by the country's central bank, according to legal adviser Marie Antonette Quiogue.
Quiogue, head of legal at BlockShoals, told Cointelegraph in an interview on Friday at Philippine Blockchain Week 2026 that Binance’s local operations fall under the Securities and Exchange Commission’s (SEC) crypto asset service provider (CASP) framework. She said BlockShoals serves as a crypto asset intermediary, introducing Philippine users to Binance’s global trading platform.
The arrangement forms part of Binance's effort to reestablish a presence in the Philippines after regulators moved to restrict access to the exchange over licensing concerns in 2024. Under the structure presented by BlockShoals, the company participates in the SEC's Strategic Sandbox, or StratBox.
The Bangko Sentral ng Pilipinas (BSP), the nation's central bank, told Cointelegraph that neither Binance nor BlockShoals is authorized to operate as a virtual asset service provider (VASP).
“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 BSP said, adding that it was coordinating with the SEC on the matter.
Cointelegraph's Ezra Reguerra (left) with BlockShoals head of legal Marie Antonette Quiogue (right). Photo: Cointelegraph
Quiogue did not dispute the BSP’s statement and acknowledged that neither Binance nor BlockShoals had applied for a local VASP license. The legal adviser argued that the absence of a VASP license does not prevent the companies from providing services under SEC 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.”
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She said the regulatory structure requires BlockShoals and Binance to obtain authorization from the relevant regulator whenever they introduce services outside the SEC’s remit.
"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,” she said.
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