This is the third licensed Asian cryptocurrency exchange Binance has bought this year as it expands its global reach.
According to reports from the region on December 19, Binance has purchased Indonesian crypto asset dealer Tokocrypto. Binance CEO Changpeng Zhao (CZ), who confirmed the purchase in a tweet, said the transaction “simply injected more capital and boosted our stake a little bit.”
At the exchange, adjustments are anticipated. According to reports, Yudhono Rawis will take over as interim CEO for Tokocrypto creator Pang Xue Kai. The board of commissioners for the corporation will continue to include Pang Xue Kai.
CNBC quotes Pang Xue Kai as saying:”This decision was made after careful consideration and we decided that the best step for Tokocrypto going forward is to leverage Binance’s capabilities to build a further physical trading platform for crypto assets.”
On December 6, it was reported that Binance and Tokocrypto were in talks, which increased the value of TKO by 50%. It was also claimed at the time that a round of layoffs would follow if the buyout went through. In September, Tokocrypto let go of 45 employees, or 20% of the total workforce. At same moment, it also separated from its nonfungible token market TokoMall and community space T-Hub.
In 2020, Binance made its initial investment in the Indonesian firm. Tokocrypto apparently thought about launching an initial public offering in 2021, but the offering never happened. Following its establishment in 2018, Tokocrypto became the first cryptocurrency exchange in Indonesia to be given approval by the country’s Commodity Futures Trading Regulatory Agency (Bappebti).
Since then, cryptocurrency exchanges are required to have that organization’s approval. By March of this year, Bappebti has approved 17 businesses. In November, Binance purchased the authorized Japanese cryptocurrency exchange Sakura, and in March, the authorized Malaysian exchange MX Global. Binance can operate without needing to acquire a license by purchasing businesses that have one.
