Binance returns to Philippines via BlockShoals SEC sandbox arrangement
In brief
- BlockShoals intermediates Philippine users to Binance's global platform under SEC sandbox jurisdiction
- Neither Binance nor BlockShoals holds local VASP license or peso transfer authorization
- SEC Strategic Sandbox framework enables trading access without regulatory approval, central bank disputes interpretation
- Binance regained Philippine accessibility after 2024 restrictions following regulatory warnings
The arrangement and BlockShoals' legal position
BlockShoals serves as a crypto asset intermediary, introducing Philippine users to Binance's global trading platform. The company participates in the SEC's Strategic Sandbox, or StratBox, a framework designed to test regulatory approaches for emerging technologies.
Marie Antonette Quiogue, head of legal at BlockShoals, 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. Binance and BlockShoals, we are not moving pesos, which is clearly under the jurisdiction of the BSP," Quiogue said in a statement.
The distinction matters. Neither Binance nor BlockShoals is authorized to handle peso transfers or perform activities regulated by the Philippines' central bank. That separation, BlockShoals contends, keeps the arrangement within SEC oversight and outside the central bank's VASP licensing regime.
Central bank pushback and prior enforcement
The Bangko Sentral ng Pilipinas (BSP), the nation's central bank, rejected this interpretation. The BSP stated that neither Binance nor BlockShoals is authorized to operate as a virtual asset service provider and that participation in the regulatory sandbox does not exempt entities from complying with applicable laws and licensing requirements.
Binance's path in the Philippines has been turbulent. The platform first drew regulatory scrutiny in November 2023, when the SEC warned the public that Binance was not authorized to sell or offer securities. Tensions escalated in March 2024, when the SEC asked the National Telecommunications Commission to block access to the Binance website. Local internet providers subsequently began restricting access to the platform following the order.
That enforcement action proved temporary. At the time of publication, Binance's platform was accessible to users in the Philippines, suggesting either a shift in regulatory enforcement or a technical workaround. The BlockShoals arrangement may represent a formalized path forward, though the legal ground remains contested between the SEC and the central bank.
