Binance announced Monday that its subsidiary, Tokocrypto, secured a Physical Crypto Asset Trader (PFAK) license from Indonesia's commodity regulator, Bappebti.
Tokocrypto, registered as a Prospective PFAK in 2019, successfully met Bappebti's requirements to complete the licensing process, the exchange said.
Now that Tokocrypto holds the license, it legally operates as a physical crypto asset trader.
"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 CEO Richard Teng said. "Binance is committed to fully supporting Tokocrypto in its mission to drive the growth of the Web3 ecosystem in the region".
Binance Subsidiary Is Third Exchange to Secure PFAK License in Indonesia, CEO Says
Tokocrypto CEO Yudhono Rawis stated that the license confirms the platform's compliance with Indonesia's strict licensing norms, safeguarding investor interests.
"We are proud of this achievement to become the third exchange to receive PFAK license in Indonesia, the market which has 35 prospective crypto exchanges registered with Bappebti," Rawis added.
This year, Tokocrypto's user base has exceeded 4.5m. Concurrently, there's been a 170% surge in trading volume since 2023.
Tokocrypto Holds 43% Share of Indonesia's Crypto Market
Binance reportedly completed acquiring Tokocrypto in Dec. 2022. Former Binance CEO Changpeng Zhao had said that Binance held a majority stake in Tokocrypto from the start, and with the acquisition, it simply increased its investment and ownership.
In early 2024, Tokocrypto controlled about 43% of the Indonesian crypto market. This data from CoinMarketCap highlighted its strong presence and deep market penetration.
Meanwhile, the Indonesian crypto market is rapidly growing, supported by Bappebti and soon to be overseen by the Financial Services Authority (OJK). In the first two months of 2024, over 19m people invested in crypto assets. Rising transaction volumes reflect a thriving market that Tokocrypto is successfully capitalizing on.