Binance Fully Acquires Indonesian Crypto Platform Tokocrypto

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Binance, the world’s largest crypto exchange by trading volume, has completed a full acquisition of Indonesian crypto platform Tokocrypto, increasing its stake from over 51% previously.

As 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 provide leadership support in his new role.

Following this decision, Binance is also reducing the workforce by 58% in its Indonesian unit, which is licensed under the PT Crypto Indonesia Berkat brand. Tokocrypto reportedly took additional steps to cut costs, including divesting its non-exchange business.

In 2020, Tokocrypto received an undisclosed investment from Binance as the crypto giant acquired a majority stake. As the first regulated crypto exchange in Indonesia, the company has created new products and services, improved the technology stack, and expanded its customer base. According to its CEO, Tokocrypto, which is regulated by Indonesian commodity futures regulator Bappebti, was considering a public market listing within the next two years.

Tokocrypto was born from our brainchild over 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 was to use Binance’s capabilities to create another physical trading platform for crypto assets, said Pang Xue Kai, CEO and co-founder of Tokocrypto, in the press release.

Binance CEO Changpeng Zhao confirmed the transaction via Twitter.

Binance was the majority shareholder of Toko from the start. I 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 when the Indonesian crypto market was booming with the stated aim of providing lower exchange prices for investors interested in crypto trading. Platform users can trade up to 40 digital assets, including major cryptocurrencies, for a trading fee of 0.1% on the trade value.

Indonesia is emerging as a major hotspot for cryptocurrency activity, despite having banned its use as a payment method since 2017. The Indonesian government recently said it also plans to impose profits on crypto trades.

Binance has made inroads in Asia and reportedly sought a license to operate in Japan after exiting the country four years ago. People familiar with the matter said that the nations’ easing approach to crypto and the substantial potential for user growth are the main reasons for Binances’ renewed interest in the world’s third-largest economy.

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