- Binance’s subsidiary Tokocrypto has secured a Physical Crypto Asset Trader (PFAK) license from Indonesia’s Bappebti, marking a significant milestone in its regulatory compliance and market expansion.
- This achievement reinforces Tokocrypto’s dominant position in the Indonesian crypto market, where it controls approximately 43% of the sector.
In a significant development for the cryptocurrency landscape in Southeast Asia, Binance announced on Monday that its subsidiary, Tokocrypto, has secured a Physical Crypto Asset Trader (PFAK) license from Indonesia’s commodity regulator, Bappebti. This marks a notable milestone in Binance’s strategic expansion, emphasizing its commitment to regulatory compliance and market growth in Indonesia.
Tokocrypto’s Journey to Licensing
Tokocrypto, which was registered as a Prospective PFAK in 2019, has now successfully met Bappebti’s stringent requirements, enabling it to legally operate as a physical crypto asset trader. The licensing achievement underscores Tokocrypto’s dedication to maintaining regulatory excellence and fostering a transparent and robust crypto ecosystem in Indonesia. Binance CEO Richard Teng remarked, “This milestone is a testament to Tokocrypto’s unwavering dedication to regulatory excellence and its vision of fostering a robust and transparent crypto ecosystem in Indonesia. Binance is committed to fully supporting Tokocrypto in its mission to drive the growth of the Web3 ecosystem in the region.”
PFAK License: A Testament to Compliance
Tokocrypto’s CEO, Yudhono Rawis, highlighted the significance of this accomplishment. “We are proud of this achievement to become the third exchange to receive a PFAK license in Indonesia, a market with 35 prospective crypto exchanges registered with Bappebti,” Rawis said. He emphasized that the license affirms the platform’s compliance with Indonesia’s rigorous licensing norms, ensuring investor protection and regulatory adherence.
Market Dominance and Growth
Since Binance completed its acquisition of Tokocrypto in December 2022, the platform has shown remarkable growth. Former Binance CEO Changpeng Zhao noted that Binance held a majority stake in Tokocrypto from the outset, and the acquisition further solidified its investment and ownership. By early 2024, Tokocrypto controlled approximately 43% of the Indonesian crypto market, according to data from CoinMarketCap. This dominant market share is a testament to Tokocrypto’s strong presence and deep market penetration in the region.
The platform’s user base has exceeded 4.5 million this year, with a 170% surge in trading volume since 2023. This growth is reflective of the rapidly expanding Indonesian crypto market, which saw over 19 million people invest in crypto assets in the first two months of 2024 alone. This thriving market, supported by Bappebti and soon to be overseen by the Financial Services Authority (OJK), presents a significant opportunity that Tokocrypto is poised to capitalize on.
Future Prospects
The acquisition and subsequent licensing of Tokocrypto align with Binance’s broader strategy of expanding its footprint in key global markets. As Tokocrypto continues to grow and dominate the Indonesian crypto market, Binance’s support and strategic investments are likely to further bolster its position. The successful acquisition and licensing of Tokocrypto underscore Binance’s strategic vision and commitment to fostering a regulated and thriving crypto ecosystem in Southeast Asia.
Binance subsidiary Tokocrypto announced that it has obtained a physical crypto asset dealer license issued by Indonesia's Commodity Futures Trading Regulatory Authority, becoming the third exchange in Indonesia to obtain a PFAK license. Tokocrypto's user base has exceeded 4.5…
— Wu Blockchain (@WuBlockchain) September 9, 2024
Tokocrypto’s achievement of securing the PFAK license not only reinforces its compliance with Indonesian regulations but also marks a significant step in Binance’s expansion strategy. With continued support from Binance, Tokocrypto is well-positioned to drive the growth of the Web3 ecosystem in Indonesia, solidifying its role as a leading player in the region’s cryptocurrency market.
