Cryptocurrency exchange Binance has announced a partnership with Philippines-based fintech company BlockShoals Technologies, describing the arrangement as its first formal market-entry approach in the Philippines through local partnerships and regulatory engagement. Under the structure, BlockShoals will act as the approved local intermediary, while Binance will provide technology, security, operational, and compliance support. The sandbox phase is expected to begin in the second half of 2026 and continue for at least two years under the framework of the Philippine Securities and Exchange Commission (SEC).
The announcement comes while Binance remains blocked in the Philippines following a directive from the National Telecommunications Commission (NTC), the country's telecommunications regulator, issued in March 2024.
Regulatory background and the StratBox framework
Binance's path back into the Philippine market is structured around the SEC's Strategic Sandbox, known as StratBox, a framework designed to allow controlled testing of financial technology products and services under regulatory oversight. BlockShoals holds approved participant status under this framework, providing the local regulatory standing that Binance itself currently lacks.
The Philippine SEC first warned the public against Binance in November 2023, citing the exchange's lack of registration as a corporation in the Philippines and the absence of the necessary licence to sell or offer securities. In March 2024, the SEC formally requested the NTC to block access to Binance and its related web pages, a measure that local internet service providers subsequently implemented.
The regulatory scrutiny has not been limited to Binance. In August 2025, the SEC issued an advisory against ten exchanges including OKX, Bybit, KuCoin, and Kraken, warning that their activities expose Filipino investors to risks associated with unregistered operators. A further investor alert issued in April 2026 named several additional platforms, including dYdX and Deriv, as entities appearing to offer investments to the public without SEC registration.
Compliance-oriented re-entry model
The BlockShoals arrangement reflects a model Binance has employed in other markets where direct licensing has proven difficult or where regulatory frameworks are still developing: partnering with a locally licensed or approved entity to establish a compliant operational footprint. By routing its Philippine market activity through an SEC sandbox participant, Binance is positioned to engage with regulators during a structured testing period rather than seeking immediate full authorisation.
The two-year minimum sandbox duration suggests the pathway to full market re-entry, if pursued, would extend well beyond 2028. No details have been disclosed regarding the scope of services to be offered during the sandbox phase, the number of users to be served, or any financial terms associated with the partnership.
