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Binance described Tokocrypto as its “subsidiary,” suggesting that it may have a controlling stake in the Indonesian trading platform.
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Indonesian exchange Tokocrypto received a full license under the country’s Commodity Futures Trading Regulatory Agency, also known as “Bappebti.”
On Sept. 9, Tokocrypto announced that it received the Physical Crypto Asset Trader (PFAK) license from Bappebti. The license gives the company full authority to operate as a physical crypto asset trader and ensures that the trading platform complies with the country’s trading rules.
Since 2014, exchanges in Indonesia operated within a “prospective crypto exchange” category. In 2019, Tokocrypto was also registered as a Prospective Physical Crypto Asset Trader (CPFAK). In the same year, Bappebti required all exchanges operating in Indonesia to seek authorization, providing a framework for a full license.
Tokocrypto “third” exchange to receive PFAK license
Tokocrypto CEO Yudhono Rawis said the company is the third exchange to receive the license in Indonesia. At the moment, Rawis mentioned that there are still 35 prospective crypto exchanges registered with the country’s futures regulator.
In addition, Rawis noted that obtaining the license is part of the firm’s strategy to become the lead trading platform in Indonesia. “This is an essential part of our strategy to build a solid foundation in the crypto-asset ecosystem in Indonesia and ensure that we can provide the best services to our customers,” Rawis explained.
Market share of crypto exchanges in Indonesia in 2023. Source: CoinGecko
In 2023, Tokocrypto held the top spot in Indonesia as the biggest exchange in trading volume. CoinGecko data showed that the company held a 43% market share among the country’s top three centralized exchanges. Its competitor Indodax followed closely with a 42% market share, while Upbit Indonesia had the third spot with a 15% market share.
Related: Indonesia mulling changes to dual taxation on crypto: Report
Tokocrypto, a Binance “subsidiary”
In 2020, crypto exchange Binance announced a major investment in Tokocrypto as part of its efforts to position itself in the country. However, the company did not disclose the amount it had invested in the exchange.
The global trading platform then increased its stake in Tokocrypto in 2022, expanding its reach. Former Binance CEO Changpeng Zhao described the deal as injecting more cash and increasing their shareholding.
While previous investments in Tokocrypto were ambiguous, Binance revealed in the recent announcement that the exchange is its “subsidiary.” This suggests that the Binance group may have some controlling stake over Tokocrypto.
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This article first appeared at Cointelegraph.com News
