Binance-Owned Tokocrypto Secures Crypto Trading License in Indonesia

Tokocrypto, a leading Indonesian cryptocurrency exchange and a subsidiary of Binance, has achieved a significant milestone by securing a Physical Crypto Asset Trader (PFAK) license from the country’s Commodity Futures Trading Regulatory Agency (Bappebti), according to a joint statement by Tokocrypto and Binance announcement this week.

Tokocrypto is the third exchange to receive PFAK license in Indonesia, which has 35 prospective crypto exchanges registered with Bappebti.

“Binance is committed to fully supporting Tokocrypto in its mission to drive the growth of the Web3 ecosystem in the region,” Richard Teng, CEO of Binance, said about the achievement. Binance had invested in the crypto trading platform in 2020 and 2021, and acquired the platform in late 2022.

The PFAK license, secured after a rigorous application process, underscores Tokocrypto's commitment to compliance with local regulations and its dedication to providing a safe and secure trading environment for its users, the announcement said.

The exchange has been operating as a prospective physical crypto asset trader since 2019 and has successfully met the stringent requirements set by Bappebti to obtain the full license. Tokocrypto’s user base surpassed 4.5 million this year, while monthly average trading volume grew by 138%, the exchange said, noting "consistent growth and increasing trust in Tokocrypto’s services."

According to the Indonesia Commodity Futures Trading Authority, the nation boasts over 18 million crypto investors, making it the seventh-largest crypto market globally.

With the PFAK license in place, Tokocrypto is well-positioned to expand its operations and offer a wider range of services to its users. The exchange is also likely to benefit from increased institutional interest and partnerships as it solidifies its position as a trusted and regulated player in the Indonesian crypto space.