According to reporting from Finance Feeds, Tokocrypto, a subsidiary of Binance and a major cryptocurrency exchange in Indonesia, has obtained a full license as a Physical Crypto Asset Trader (PFAK) from the country’s Commodity Futures Trading Regulatory Agency, Bappebti.
Binance, which initially became a majority shareholder in Tokocrypto, acquired the company fully in late 2022.
Since 2014, Indonesian crypto exchanges have operated under a “prospective crypto exchange” category. In 2019, Tokocrypto registered as a Prospective Physical Crypto Asset Trader (CPFAK), following a mandate from Bappebti requiring all exchanges to seek full authorization. Tokocrypto is now the third exchange to receive this PFAK license in Indonesia, says Finance Feeds.
The license comes amid a regulatory push in Indonesia, which in late 2023 required all crypto exchanges to register with the Commodity Future Exchange (CFX), the world’s first national bourse for crypto assets. The CFX is regulated by Bappebti and functions similarly to a traditional stock exchange but focuses on digital assets.
“We are proud of this achievement to become the third exchange to receive a PFAK license in Indonesia, a market where 35 prospective crypto exchanges are registered with Bappebti,” Tokocrypto CEO Yudhono said in a statement.
Finance Feeds reports that Tokocrypto currently holds the top position as the largest exchange by trading volume in Indonesia, with a 43 percent market share in 2023, according to CoinGecko data. It is followed closely by Indodax, with a 42 percent share, and Upbit Indonesia, which holds a 15 percent share.
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 was eyeing a public market listing in the next two years, according to Finance Feeds.
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 percent on the transaction value.
Source: Finance Feeds
Stock photo by Kanchanara on Unsplash
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