Binance is ready to bet on the Indonesian crypto market, as it has made an undisclosed investment in Tokocrypto, a crypto exchange based and regulated in Jakarta.
On Tuesday morning, Binance announced it's going to put funding into Tokocrypto, for this exchange to build new products and offerings, improve its tech stack and expand its customer base.
in 2019 as Tokocrypto became the first cryptocurrency exchange to be regulated by the Indonesia Commodity Futures Trading Regulatory Agency (BAPPEBTI).https://t.co/7ryxDBWPEM
— Binance (@binance) May 12, 2020
Tokocrypto launched back in 2018. Since then, it became the first business of its kind to obtain a 2019 business license from Indonesia's Commodity Futures Trading Regulatory Agency (BAPPEBTI).
What's Indonesia's Stand on Crypto?
As far as digital assets, Indonesia has enforced strict laws. Crypto is not a way of making payments in the country. In contrast, the new regulations from early 2020 have had investors putting up a rather high minimum capital if they want to trade with crypto derivatives.
However, it seems there are a few holes in the governmental regulation when it comes to crypto trading in Indonesia do exist. While no unbiased reports are revealing the details of the Indonesian crypto market, a Reuters report from early 2020 says the country's crypto market is as big as the stock market here.
Here's what Changpeng CZ Zhao, the CEO and co-founder of Binance had to say about this and the Tokocrypto investment:
“Indonesia will become one of the leading centres of the blockchain ecosystem in Southeast Asia. Our investment in Tokocrypto will allow us to explore exciting new opportunities together for the Indonesian market with a regulated local partner to enable the freedom of money further.”
Huobi Also Made a Move-in Indonesia
Binance's competitor Huobi was the first big exchange to begin operating on the Indonesian crypto market by establishing a local branch in 2018. Binance's arrival is more recent and started after the Indonesian rupiah currency had been added last month to Binance's peer-to-peer (P2P) platform. By investing in Tokocrypto, Binance gains exposure to the crypto scene in Indonesia, yet without having to go through regulatory requirements.
The Investment Sum Hasn't Been Disclosed
While the sum for the investment Binance made in Tokocrypto hasn't been revealed yet, at least the purpose of the funding is known. As mentioned earlier, new services, products and technological improvements are going to be promoted, together with a blockchain education initiative and national expansion.
Tokocrypto has already been backed by the Singapore-based investment and asset trading firm QCP Capital. Its advisory board has Darius Sit and Joshua Ho from QCP Capital, also Digix's Shaun Djie, sitting as members. Besides, the exchange collaborates with PPTAK, the Indonesian financial intelligence agency, trying to partner up further with other industries' players.