THE Securities and Exchange Commission (SEC) clarified on Thursday that BlockShoals Technologies Inc.’s ongoing 90-day integration into a regulatory sandbox did not signal the start of public crypto trading or user onboarding.
The clarification followed the SEC May 29 announcement that BlockShoals had been admitted into the SEC Strategic Sandbox, or StratBox, which allows firms to test financial products and services within a controlled regulatory environment.
BlockShoals has partnered with Binance, the world’s largest crypto exchange, and the deal was seen as allowing the latter to return to the Philippines after having been banned for operating in the country without a license.
The SEC said the 90-day period was solely for the integration of BlockShoals’ systems with a virtual asset service provider (VASP) licensed by the Bangko Sentral ng Pilipinas (BSP).
Several crypto websites on Thursday reported that the BSP had said that BlockShoals and Binance did not have VASP licenses and that StratBox inclusion did not mean that licenses were not needed.
This could not be immediately confirmed with the central bank.
The SEC, meanwhile, said that the integration process would focus on developing secure fiat rails that will allow users to convert pesos into cryptocurrencies and vice versa, a key requirement for future operations.
Any system access or connectivity provided during the integration period will be limited to activities necessary for technical testing and sandbox operations, the SEC said.
“This should not be construed as the commencement of public onboarding, public trading operations, or broader market reopening,” it added.
Under the approved StratBox testing plan, BlockShoals is authorized to test trading activities and other advanced crypto-asset products within the sandbox framework, subject to regulatory safeguards.
The SEC emphasized that any future public participation or onboarding activities would remain subject to applicable regulations and require further approval from the commission.
It also advised the public to rely only on official SEC announcements regarding developments involving BlockShoals and its participation in the Strategic Sandbox program.