The Bangko Sentral ng Pilipinas (BSP) announced that cryptocurrency exchange Binance and its local partner do not possess the required license to operate in the Philippines. The central bank made the statement public, signaling a potential crackdown on unregistered digital asset services in the country.
What the BSP said
The BSP confirmed that neither Binance nor its unnamed local partner holds a certificate of authority to conduct business as a virtual asset service provider. Under Philippine law, any entity offering cryptocurrency exchange or custody services must secure such a license from the central bank. Without it, operations are illegal.
The regulator did not specify penalties or enforcement actions immediately. But the statement suggests Binance could face fines, cease-and-desist orders, or even criminal charges if it continues servicing Philippine users without approval.
Binance's history with regulators
This isn't Binance's first brush with a central bank. The exchange has faced warnings from regulators in Japan, the UK, Germany, and Singapore over unlicensed activities. In the Philippines, the BSP has previously reminded the public that Binance is not authorized to sell or solicit investments.
Binance has often argued it does not have a physical presence in countries where it lacks licenses, relying on its global platform. But the BSP's latest statement makes clear that targeting local users — even through a partner — still requires a local license.
What this means for users
Philippine-based traders using Binance now face uncertain access. The central bank's warning could lead banks and payment processors to block transactions with the exchange. Users might see deposit or withdrawal issues. The BSP has urged the public to only deal with registered virtual asset service providers.
The local partner named by the BSP remains unidentified in the statement. That partner could be a payment gateway, a marketing firm, or another entity facilitating Binance's local presence. The central bank did not clarify the partner's role.
Next steps
The BSP has not set a deadline for Binance or its partner to cease operations. But it has opened the door for further regulatory action. The Securities and Exchange Commission (SEC) of the Philippines has also warned against Binance's unregistered securities offerings in the past.
Binance has yet to issue a public response to the BSP's statement. The exchange's next move — whether to apply for a license, exit the market, or ignore the warning — will determine how this plays out for its Philippine users.
