- Binance, through a partnership with BlockShoals, operates as a partner CASP under SEC rules, but the Philippines’ central bank clarified that it lacks VASP authorization.
Binance faces another layer of hurdles in its Philippine reentry. On Thursday, the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, issued an official statement to a local publication clarifying the matter.
According to Bitpinas, a Philippine-based crypto news outlet, the BSP confirmed that neither Binance nor its local partner has a Certificate of Authority to operate as a Virtual Asset Service Provider (VASP). The largest global crypto exchange has recently routed its return to the Southeast Asian nation through a partnership with BlockShoals Technologies, a private fintech firm.
Binance Secures CASP Authorization from the Philippine SEC
The partners secured a final approval from the Philippine Securities and Exchange Commission (SEC) by the end of May 2026 to operate under the regulator’s controlled sandbox for at least two years. Their platform runs under the agency’s Crypto-Asset Intermediary (CAI) model, wherein BlockShoals Stratbox (Strategic Sandbox) bridges Philippine users’ access to Binance’s select products and services.
The SEC’s approval also specifically designated Binance as BlockShoals’ global crypto-asset service provider (CASP) partner. The latest developments led the Philippines’ National Telecommunications Commission (NTC) to lift its geoblock on the exchange’s website.
Lacking VASP Authorization from the Philippines’ Central Bank
Binance and its partner have already cleared the roadblock at the SEC, but they have yet to address the central bank’s requirements. The BSP explained that the exchange only operates as a partner CASP rather than a global VASP.
The distinction between CASPs and VASPs is a crucial factor that crypto exchanges must navigate under Philippine laws. Under the country’s complex and rigid regulatory framework, the BSP exercises exclusive jurisdiction over VASPs while the SEC maintains oversight on CASPs.
The BSP revealed that it is already coordinating with the SEC to allow the concerned parties to address the issues.
VASPs and CASPs Under the Philippines’ Regulatory Framework
In this context, the central bank’s VASP classification covers entities that facilitate the exchange of virtual assets, including Bitcoin (BTC) and cryptocurrencies, for fiat currency. Additionally, it oversees their transfer and custody.
The Philippines’ regulatory framework states that VASP transactions directly affect the country’s payment systems. Thus, they must comply with the central bank’s anti-money laundering (AML) protocols and other measures to ensure monetary stability.
On the other hand, the SEC’s CAI and CASP models generally focus on ensuring that trading venues, order books, Initial Coin Offerings (ICOs), and management of crypto assets comply with existing securities laws. It ensures they adhere to the country’s stringent consumer and investor protection safeguards.
It’s worth noting that the aforementioned distinction between VASPs and CASPS means they are subject to the BSP and the SEC’s varying capital and licensing requirements.
