SEC clarifies BlockShoals crypto participation

The Securities and Exchange Commission (SEC) has clarified that the 90-day integration period granted to BlockShoals Technologies Inc. under its regulatory sandbox program does not signal the resumption of public cryptocurrency trading activities.

In a statement issued on Thursday, the SEC said the integration period is intended solely for the establishment of technical infrastructure between BlockShoals and a virtual asset service provider (VASP) licensed by the Bangko Sentral ng Pilipinas.

The clarification follows the SEC’s May 29 announcement that BlockShoals had been admitted into the SEC Strategic Sandbox, or StratBox, which allows selected firms to test innovative financial products and services within a controlled regulatory environment.

Under its approved testing plan, BlockShoals is authorized to test trading activities and other advanced crypto-asset products. However, the SEC emphasized that the current 90-day period is focused only on integrating systems and establishing secure payment infrastructure.

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Specifically, the company is working on the development of secure fiat rails that would allow users to convert Philippine pesos into cryptocurrencies and vice versa. The regulator said this process involves creating the necessary technical connections with its local VASP partner.

The SEC stressed that any access or operational connectivity provided during the integration period is limited to activities necessary for technical integration and sandbox testing.