Binance Subsidiary Wins Indonesia License to Sell Crypto
On Monday, Binance revealed that its subsidiary Tokocrypto has secured a license from Indonesia’s Commodity Futures Trading Regulatory Agency, simply known as Bappebti, to sell crypto assets in the country as a Physical Crypto Asset Trader. The move testifies to how Tokocrypto is committed to compliance and transparency in the exponentially growing Indonesian cryptocurrency market.
Compliance Journey and Market Impact at Tokocrypto
Tokocrypto, while previously registered as a prospective PFAK back in 2019, eventually met the stringency of the regulatory requirement for full approval. Therefore, this allows, in return, the ability to operate legally as a physical crypto-asset trader with increased investor confidence and transparency in operations.
“Achieving this license showcases our dedication to regulatory standards and investor protection,” said Tokocrypto CEO Yudhono Rawis. He added that with the license in question, Tokocrypto became the third platform in Indonesia to do so.
Binance’s Role in Tokocrypto’s Growth
Binance had been part of Tokocrypto since December 2022, when it completed a buy-out of the platform and sealed a full ownership deal. While Binance earlier held the majority stake, the move meant increasing its investment in Indonesia’s crypto space.
By early 2024, it had reached a commanding 43% market share in Indonesia’s cryptocurrency market. Add to that the fact that trading volume surged 170% from 2023, and that dominance signals a successful growth strategy taken by Tokocrypto.
Indonesia’s Booming Crypto Market
Indonesia has been very aggressive in terms of the crypto market. According to various reports, over 19 million people invested in crypto assets in the first two months of 2024. These growing numbers indicate the increasing attractiveness of the market, specifically as more investors try to diversify into other classes of financial assets.
Growth at Tokocrypto reflects the greater trend in the industry as a whole, where crypto market supervision will soon come under the wing of the Financial Services Authority and not under Bappebti, ushering in a new regime for regulation.
Binance’s growth through Tokocrypto illustrates the increasing prominence of Indonesia in the larger global crypto market. This move will also solidify Binance’s position in Southeast Asia and further its campaign for a safer and more regulated cryptocurrency ecosystem.
