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Tokocrypto Receives Full License from Indonesian Regulator
Tokocrypto, a prominent cryptocurrency exchange in Indonesia, has achieved a significant milestone by securing a full license from the Commodity Futures Trading Regulatory Agency, known locally as Bappebti. This license officially recognizes Tokocrypto as a fully authorized physical crypto asset trader in the country.
New Physical Crypto Asset Trader License
On September 9, Tokocrypto proudly announced that it had been granted the Physical Crypto Asset Trader (PFAK) license by Bappebti. This license grants the exchange complete authority to operate legally within Indonesia’s regulatory framework, ensuring compliance with the nation’s trading regulations.
Since 2014, crypto exchanges in Indonesia had operated under a “prospective crypto exchange” category, meaning they were permitted to trade but were not fully licensed. In 2019, Tokocrypto was classified as a Prospective Physical Crypto Asset Trader (CPFAK), a step toward becoming fully licensed. That same year, Bappebti mandated all exchanges to seek full authorization, providing a pathway to the PFAK license.
Tokocrypto Becomes Third Fully Licensed Exchange
Yudhono Rawis, Tokocrypto’s CEO, shared that Tokocrypto is now the third exchange in Indonesia to receive the PFAK license. Rawis also noted that there are still 35 other prospective crypto exchanges awaiting full authorization from the country’s futures regulator.
Obtaining this license, according to Rawis, is a key part of Tokocrypto’s strategy to solidify its position as the leading crypto trading platform in Indonesia. He explained, “This is an essential part of our strategy to build a solid foundation in the crypto-asset ecosystem in Indonesia and ensure that we can provide the best services to our customers.”
Leading the Market in Indonesia
In 2023, Tokocrypto was the largest cryptocurrency exchange in Indonesia, leading by trading volume. According to data from CoinGecko, the exchange held a 43% share of the market among the top three centralized exchanges in the country. Its closest competitor, Indodax, had a 42% market share, while Upbit Indonesia held the third spot with 15%.
Binance’s Investment in Tokocrypto
Tokocrypto’s growth has been significantly supported by global crypto giant Binance. In 2020, Binance made a major investment in the Indonesian exchange as part of its strategy to expand in Southeast Asia. While the exact investment amount was not disclosed, Binance increased its stake in Tokocrypto in 2022, further expanding its influence.
Former Binance CEO Changpeng Zhao highlighted this partnership, explaining that Binance injected more capital into Tokocrypto and increased its shareholding. The recent disclosure that Tokocrypto is now a “subsidiary” of Binance suggests that Binance may hold a controlling interest in the exchange.
Footnotes:
Bappebti: Indonesia’s regulatory body overseeing futures trading, including commodities and crypto assets.
PFAK License: Physical Crypto Asset Trader license, required for full authorization to operate a crypto exchange in Indonesia.
