Pintu’s backers believe the exchange has the potential to become one of the major cryptocurrency brands in Indonesia and, more widely, Southeast Asia.
Pintu, Indonesia’s first native mobile cryptocurrency wallet and trading platform, has acquired $35 million from some of the industry’s leading venture capital firms, putting the company on track to rapidly grow its staff and product offerings.
Lightspeed Venture Partners led the Series A, a technology-focused investor with a strong track record in blockchain, finance, and data analytics. Several other prominent venture capital firms, including Alameda Ventures, Blockchain.com, Pantera Capital, Coinbase Ventures, Castle Island Ventures, and Intudo Ventures, also participated in the fundraising.
Pintu intends to use the capital to expand its workforce, launch new product offerings, and accelerate the use of cryptocurrencies in Indonesia.
Pintu co-founder and CEO Jeth Soetoyo stated that his platform will assist Indonesians in “overcoming the barriers to financial inclusion.” He continued by elaborating on Indonesia’s value case for cryptocurrency adoption:
“As the fourth-most populous country in the world and with only 1-2% of Indonesians having exposure to cryptocurrencies, there is an immense opportunity for retail investors to gain access to diversified and dynamic investment opportunities through Pintu’s unique crypto-asset trade offerings.”
Indonesia’s cryptocurrency economy is still in its infancy, as more businesses navigate a complex regulatory framework governing the purchasing and selling of digital assets. In February 2019, the country’s Commodity Futures Trading Regulatory Agency, or BAPPEBTI, approved crypto as a speculative commodity.
However, the central bank of Indonesia, Bank Indonesia, maintains a stringent prohibition on cryptocurrency transactions.
Pintu is a BAPPEBTI-registered cryptocurrency broker, enabling it to service ordinary investors. The broker now supports sixteen cryptocurrencies, including nonfungible tokens. According to the Ministry of Trade, Indonesia has over 6.6 million cryptocurrency investors, more than three times the number of public equities investors.
According to Cointelegraph, the country’s parliament are considering a new tax structure for cryptocurrency trading. In May, an Indonesian Directorate General of Taxes representative stated that cryptocurrency revenues may soon be categorised as capital gains.