Binance fully acquires Indonesian crypto platform Tokocrypto
Binance, the world’s largest crypto exchange in terms of trading volume, has completed the full acquisition of Indonesian crypto platform Tokocrypto, lifting its shareholding from more than 51% earlier.
Part of the deal, Tokocrypto founder and CEO Pang Xue Kai will step down to be replaced by Yudhono Rawis as interim chief. However, the founder will remain a member of the Board of Commissioners to give leadership support in his new role.
Following the move, Binance is also trimming the workforce by 58 percent in its Indonesian unit, which is authorised under the brand name, PT Crypto Indonesia Berkat. Tokocrypto will reportedly take additional measures to cut costs, including disposing its non-exchange businesses.
In 2020, Tokocrypto had received an undisclosed investment from Binance as the crypto giant acquired a controlling stake. As Indonesia’s first regulated crypto exchange, the company has been building out new products and services, improving the tech stack and expanding its customer base. Per its CEO, Tokocrypto, which is regulated by Indonesia’s commodity futures trading regulator, Bappebti, was eyeing a public market listing in the next two years.
“Tokocrypto came from our brainchild more than four years ago. I am very proud to see every growth, slogan and contribution the company has made to advance Indonesia’s digital economy. This decision was made after careful consideration. We decided that the best step for Tokocrypto going forward is to utilize Binance’s capabilities to build a further physical trading platform for crypto assets,” Pang Xue Kai, CEO and co-founder of Tokocrypto, said in the release.
Binance CEO Changpeng Zhao confirmed the transaction through Twitter.
Binance was the majority shareholder of Toko from the beginning. Just injected more cash and increased our shareholding a bit. pic.twitter.com/NIeYYxzPdU
— CZ 🔶 Binance (@cz_binance) December 19, 2022
Tokocrypto was founded in 2018 just as Indonesia’s crypto market was flourishing with the stated goal of providing lower exchange prices to investors interested in trading crypto. Users on the platform can trade up to 40 digital assets, including top cryptocurrencies, at a trading fee of 0.1 % on the transaction value.
Indonesia has been emerging as a major hotspot for cryptocurrency activity, though it has banned using it as a payment method since 2017. The government of Indonesia recently said that it is also planning to tax profit on crypto trades.
Binance has been making inroads into Asia, and was reportedly seeking a license to operate in Japan after its exit from the country four years ago. People familiar with the matter said that the nation’s “easing approach” to crypto and “substantial potential for user growth” are the key reasons for Binance’s renewed interest in the world’s third-largest economy.