Binance obtains crypto license in Indonesia through local subsidiary
Key Takeaways
- Tokocrypto secures PFAK license from Indonesia’s Bappebti, strengthening its regulatory position.
- Tokocrypto’s user base grows to 4.5 million with a 138% increase in monthly average trading volume.
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Tokocrypto, a Binance group member, has obtained the Physical Crypto Asset Trader (PFAK) license from Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti).
According to a Sept. 9 statement, the company’s user base has grown to over 4.5 million this year, with a 138% increase in monthly average trading volume.
The license is expected to further bolster the platform’s expansion and cement its status as a leader in Indonesia’s crypto industry.
Richard Teng, CEO of Binance, stated that Tokocrypto’s regulatory accomplishment emphasizes Binance’s support for strengthening Indonesia’s Web3 ecosystem.
Notably, Indonesia elected a seemingly crypto-friendly option for its government, consisting of Prabowo Subianto for president and his pro-crypto running mate, Gibran Rakabuming Raka, as vice president.
This could mean that the crypto-friendly approach seen in the country so far might be maintained for the next five years.
Yudhono Rawis, CEO of Tokocrypto, said the PFAK license is crucial in realizing Tokocrypto’s goal of becoming Indonesia’s top crypto-asset trading platform, and that the firm is proud to be the third exchange to receive this license.
A major region for crypto
OKX recently got a Major Payment Institution (MPI) from the Monetary Authority of Singapore (MAS) and hired the former MAS Deputy Director and Head of Money Markets Gracie Lin as its CEO.
Moreover, crypto companies such as Crypto.com and Ripple Labs already have an MPI in the country.
These movements from blockchain industry players in the Central and Southern Asia and Oceania (CSAO) region can be explained by its high numbers when it comes to crypto adoption.
According to Chainalysis’ “2023 Geography of Cryptocurrency Report,” 6 out of 10 countries with the highest adoption values are located in CSAO, with Indonesia ranking seventh.
The CSAO shows the most activity from large institutional transactions, which are over $10 million movements, accounting for nearly 50% of all the transactions in the region.
Additionally, the CSAO leads in “grassroots” adoption, as nearly 56% of their transactions were related to the decentralized finance (DeFi) ecosystem between 2022 and 2023.
Yet, what might be of the utmost interest for crypto companies such as crypto services providers is the web traffic related to centralized exchanges registered by the CSAO countries with the highest crypto adoption index, which is roughly 60% on average.
Earlier this year in March, Indonesia mandated that all crypto products must undergo a regulatory sandbox evaluation by the Financial Services Authority to ensure legality, enhance consumer protection, and combat fraud.
Last month, Indonesia’s presidential election results maintained the ruling party’s power, likely ensuring continued support for crypto-friendly policies under President Joko Widodo’s tenure.
In May, Fordefi expanded into the Indonesian market by powering Pintu’s Web3 self-custodial wallet, aiming to bolster the security and autonomy of Pintu’s 20 million users.
Last month, Binance faced regulatory hurdles that decreased its market share, as scrutiny in several jurisdictions heightened competition and regulatory pressures.
In May, Hex Trust expanded its licenses in Dubai and launched the USDX stablecoin on the Flare blockchain, enhancing its regulatory standing and service capabilities.
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Author: Gino Matos
