SEC says BlockShoals integration period not start of public trading

THE SECURITIES and Exchange Commission (SEC) said the 90-day integration period granted to BlockShoals Technologies, Inc. under its Strategic Sandbox participation is limited to technical preparations and does not mark the start of public trading activities.

In a statement on Thursday, the SEC said the integration phase forms part of BlockShoals’ approved testing plan under the regulatory sandbox framework, which lets the company test crypto-asset products and trading activities in a controlled environment.

The corporate regulator said BlockShoals must connect its systems with a virtual asset service provider licensed by the Bangko Sentral ng Pilipinas as part of the sandbox requirements.

The 90-day period is intended solely for establishing technical infrastructure and system connectivity between BlockShoals and its local partner it said.

The work includes developing fiat rails that would enable the conversion of Philippine pesos into cryptocurrencies and vice versa through on-ramping and off-ramping mechanisms.

The SEC said any access to systems during the period is restricted to activities necessary for technical integration and sandbox testing.

“This should not be construed as the commencement of public onboarding, public trading operations, or broader market reopening,” the commission said.

The clarification comes amid interest in BlockShoals’ participation in the Strategic Sandbox, a regulatory framework that allows companies to test innovative financial products and services under SEC supervision.

The SEC also urged the public to rely on official announcements regarding developments involving BlockShoals and its sandbox activities. — Alexandria Grace C. Magno