Binance Indonesian Subsidiary Secured Full License To Operate

Key Points:

• Binance Indonesian subsidiary, Tokocrypto, has secured a full license as a Physical Crypto Asset Trader from Indonesia’s Bappebti.
• Following its acquisition by Binance in late 2022, Tokocrypto has expanded significantly.
• Indonesia’s crypto market is booming, with over 19 million investors in the first two months of 2024

Tokocrypto, the Binance Indonesian subsidiary, gained full license to operate as a Physical Crypto Asset Trader, or in its Indonesian nomenclature, PFAK, from Indonesia’s Commodity Futures Trading Regulatory Agency, Bappebti.

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Tokocrypto Secures Full License as PFAK from Bappebti

Binance announced the regulatory milestone in a September 9 press release. This is a very important achievement for Tokocrypto, which was first registered as a prospective trader in 2019. Following the rigorous licensing process, the Binance Indonesian subsidiary may now carry out full operations in the Indonesian market.

Richard Teng, Binance’s chief executive, said this move demonstrates the leading exchange’s commitment to the regulations. The CEO emphasized that this move proves Binance means business in developing an adequate crypto ecosystem in the country.

Binance acquired Tokocrypto in late 2022. Following the announcement, which set tongues wagging about how much Binance had invested in the company, it turned out that Tokocrypto was indeed a subsidiary of Binance, wholly owned.

Resulting from this very acquisition were the drastic changes in the leadership of Tokocrypto with its CEO, Pang Xue Kai, finally stepped down, with a huge cut in employees amounting to about 58% of its current employees under the restructuring process.

The Dominance of Tokocrypto in Indonesia

Tokocrypto has been one of the leaders in the fast-developing Indonesian crypto market. As per CoinMarketCap, it held about 43% of the market in early 2024. The Binance Indonesian subsidiary did not lag behind and boasted growth of its users to more than 4.5 million and reportedly a 138% growth in monthly trading volume.

The crypto market is indeed fertile in Indonesia, with encouraging regulations from Bappebti and further plans for oversight by the Financial Services Authority, or OJK. More than 19 million Indonesians have poured investments into crypto assets in the first two months of 2024-very fertile ground for Tokocrypto to capitalize on.