Tokocrypto, an Indonesian exchange, has obtained the Physical Crypto Asset Trader (PFAK) license from Bappebti, granting it full operational authority.
On September 9, Tokocrypto disclosed that it had acquired the Physical Crypto Asset Trader (PFAK) license from Bappebti. The license grants the company complete authority to conduct business as a physical trader of crypto assets and guarantees that the trading platform adheres to the country’s trading regulations.
Indonesian exchanges have been engaged in the “prospective crypto exchange” category since 2014. Additionally, Tokocrypto was registered as a Prospective Physical Crypto Asset Trader (CPFAK) in 2019.
In the same year, Bappebti mandated that all exchanges operating in Indonesia obtain authorization, thereby establishing a framework for a comprehensive license.
The PFAK license will be Granted to Tokocrypto’s “Third” Exchange.
CEO Yudhono Rawis of Tokocrypto stated that the company is the third exchange in Indonesia to obtain the license. Currently, Rawis stated that the country’s futures regulator has registered 35 potential crypto exchanges.
Furthermore, Rawis observed that the company’s objective is to establish itself as the premier trading platform in Indonesia, and the acquisition of the license is a component of this strategy.
According to Rawis, this is a critical component of our strategy to establish a strong foundation in the Indonesian crypto-asset ecosystem and guarantee that we can deliver the highest quality services to our consumers.
Tokocrypto was the largest exchange in Indonesia by trading volume in 2023. The company’s market share among the top three centralized exchanges in the country was 43%, according to CoinGecko data. Indodax, its competitor, followed closely with a 42% market share, while Upbit Indonesia held the third position with a 15% market share.
Tokocrypto, a “Subsidiary” of Binance
Binance, a cryptocurrency exchange, disclosed a substantial investment in Tokocrypto in 2020 as part of its endeavors to establish itself in the nation. The company did not disclose the quantity of money it had invested in the exchange, however.
In 2022, the global trading platform expanded its scope by increasing its stake in Tokocrypto. Changpeng Zhao, the former CEO of Binance, characterized the agreement as a means of increasing its shareholding and injecting additional funds.
Despite the ambiguity surrounding previous investments in Tokocrypto, Binance recently disclosed that the exchange is its “subsidiary” in a recent announcement. This implies that the Binance group may possess a controlling interest in Tokocrypto.
