PHILIPPINE crypto asset intermediary BlockShoals Technologies Inc. on Friday said it had selected a Bangko Sentral ng Pilipinas (BSP)-regulated virtual asset service provider (VASP) and was completing due diligence requirements as part of its participation in the Securities and Exchange Commission’s (SEC) Strategic Sandbox (StratBox) program.
The company said onboarding and integration activities would begin once the partnership is formally finalized, describing the move as a key component of its SEC-approved testing framework.
The announcement came a day after the SEC clarified that the 90 days granted to BlockShoals under the StratBox program was intended solely for the integration of the company’s systems with a BSP-licensed VASP and did not necessarily authorize the operation of a virtual asset exchange or the public offering of crypto-asset services.
The regulator also stressed that all activities remained subject to regulatory oversight and compliance requirements.
BlockShoals said the engagement of a regulated VASP partner had always been part of its approved testing plan.
“It has always been the plan for BlockShoals Technologies Inc. and Binance to work with a Virtual Asset Service Provider regulated by the Bangko Sentral ng Pilipinas wherever this is required,” said Marie Antonette Quiogue, legal department head and director at BlockShoals.
She said the arrangement was included in the testing plan approved by the SEC under its StratBox Framework in November 2025.
BlockShoals and global cryptocurrency exchange Binance announced last month that they would work together under the SEC’s sandbox framework, with BlockShoals serving as the local intermediary while Binance would provide technology, security and operational support for the planned testing phase.
The partnership will allow Binance, the world’s largest crypto exchange, to return to the Philippines after it was banned by the SEC for operating in the country without the required license.
Quiogue said company representatives informed regulators during a May 29 meeting with the SEC and the BSP’s Technology Risk and Innovation Supervision Department that BlockShoals was finalizing an agreement with a BSP-accredited VASP partner.
According to the company, securing a regulated VASP partner was both a built-in requirement of its approved testing plan and a condition under its notice to proceed from the SEC.
“A VASP has been selected, and both parties are now completing the required due diligence,” Quiogue said.
“It is important to BlockShoals to work with a partner that is properly regulated, has strong compliance systems, and is committed to investor protection,” she added.
The company did not disclose the identity of the selected VASP, saying the partnership would be announced once onboarding and integration activities formally commence.
BlockShoals also reiterated that it remained under the SEC’s supervision during the sandbox testing period and welcomed coordination between the SEC and BSP as the two regulators oversee separate but complementary regulatory frameworks.
It assured that it remained committed to regulatory compliance and investor protection as it proceeds with the testing phase of its digital asset-related operations.
According to its website, BlockShoals is a Philippine-incorporated fintech company “positioned at the intersection of digital innovation, financial services, and regulatory compliance.”
It said it “bridges global crypto platforms with the local regulatory environment in the Philippines” and was established to serve as a compliant and transparent crypto asset intermediary (CAI), enabling access to crypto asset services while upholding robust consumer protection standards.
