Indonesian crypto exchange Tokocrypto has secured a full license from the country’s Commodity Futures Trading Regulatory Agency (Bappebti). In a post, Binance called Tokocrypto one of its subsidiaries, adding that the platform obtained the Physical Crypto Asset Trader (PFAK) license.
The license grants Tokocrypto authorization to operate as a licensed crypto asset trading platform in compliance with regulations. “The company has now completed a rigorous licensing process to become a fully authorized physical crypto asset trader in Indonesia,” Binance said.
Binance made an investment in the exchange in 2020, though the financial details were not disclosed. In 2022, Binance increased its stake, further solidifying its position in the Indonesian market.
EXPLORE: Binance Future’s Listing Fuels Frenzy for Neiro on Ethereum
Indonesia Mandates Crypto Exchanges to Obtain License
Since 2014, Indonesian exchanges have been categorized as “prospective crypto exchanges,” operating under provisional regulatory frameworks. Tokocrypto was registered in 2019 as a Prospective Physical Crypto Asset Trader (CPFAK).
The move comes after Bappebti’s 2019 mandate requiring all crypto exchanges to seek proper authorization to continue operating legally in the country.
We are thrilled to announce that Tokocrypto, a part of the #Binance group, has secured a Physical Crypto Asset Trader (PFAK) license from Indonesia’s Bappebti.
This milestone highlights our commitment to regulatory compliance and investor trust.
Read more ⤵️… pic.twitter.com/zMxZ2yQJ5g
— Binance (@binance) September 9, 2024
Yudhono Rawis, CEO of Tokocrypto, said that Tokocrypto is now the third exchange in Indonesia to obtain such a license. Rawis highlighted that 35 other exchanges remain in the “prospective” category, still awaiting full regulatory approval.
He further explained that securing this license is key to Tokocrypto’s goal of becoming the dominant trading platform in Indonesia’s growing crypto market. “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,” said Rawis.
Data from CoinGecko shows Tokocrypto held a commanding 43% share of Indonesia’s centralized exchange market in 2023, making it the largest crypto exchange by trading volume.
Indodax follows closely with a 42% market share, while Upbit Indonesia holds 15%. Tokocrypto’s dominance in the market underscores its continued efforts to strengthen its position as Indonesia’s leading crypto platform.
EXPLORE: Binance Review and Comparison
Binance Accelerates Global Expansion Amid US Regulatory Issues
Earlier this year, Binance launched Binance Thailand, a joint venture in partnership with Gulf Innova, a subsidiary of Gulf Energy Development. Binance Thailand, also known as Binance TH, offers a platform for trading digital assets, with pairs denominated in Thai baht.
The platform is integrated with local Thai banks and has partnered with Binance Kazakhstan for brokerage services, all under the supervision of Thailand’s SEC. The expansion came as Binance and its U.S. affiliate, Binance.US, have been under regulatory pressure.
In June, the U.S. Securities and Exchange Commission (SEC) filed an enforcement action against the companies, alleging the sale of unregistered securities.
The lawsuit also named Binance founder Changpeng Zhao, accusing him of controlling Binance.US despite previous claims that it operated independently. In November, Zhao resigned as CEO and admitted to an anti-money laundering violation, agreeing to a $50 million fine.
EXPLORE: 10 Best Decentralized Exchanges for September 2024
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
