Binance invested in Tokocrypto, the first regulated cryptocurrency exchange in Indonesia
After acquiring Coinmarketcap for $ 400 mln, as AZCoin News reported, Binance continues to expand its business. This time it is the ASEAN region with the investment in the Tokocrypto – regulated cryptocurrency exchange in Indonesia, Southeast Asia’s largest economy.
However, Binance did not say how much money it invested in Tokocrypto, or what percentage of its shares in the Indonesian exchange. However, let’s wait and see what they will do for Tokocrypto in the near future.
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
What is Tokocrypto? Why Binance invests in this exchange?
Tokocrypto is an exchange from Indonesia, founded in early 2018. On 26 November 2019, the platform announced that it had received the status of officially registered Crypto Exchange with the Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi – BAPPEBTI) as Registration Number 001/BAPPEBTI/CP-AK/11/2019. This was the first time that a crypto exchange received this regulatory status in Indonesia.
However, since its inception so far, traffic to the exchange is minimal, and it seems Tokocrypto is not too famous. Because in Indonesia, people know more about INDODAX than this exchange.
Tokocrypto’s ranking on Alexa is also low | Source: Alexa
It is known that Tokocrypto will use the new capital from Binance to hire new personnel in areas including senior management, marketing, and customer support, adding to the current number of employees of 42 employees.
The startup’s chief executive Pang Xue Kai told The Business Times:
“The funds will also be used to launch new products, enhance technology, and to launch blockchain education initiatives in the region. We are also using these funds to set up remote offices in different parts of Indonesia… As of now, we plan to remain in Indonesia and to tap this market.”
Tokocrypto earns revenue from charging fees for the transactions. Tokocrypto’s average daily transaction volume currently stands at about $ 700,000. The startup had been on the lookout for strategic investors and found the right fit with Binance. It previously raised seed funding from Singapore’s digital asset trading firm QCP Capital.
For some reason, Binance decided to choose Tokocrypto as a development site. Nonetheless, Indonesia is nevertheless the largest economy in Southeast Asia. Therefore, Tokocrypto still plays a role in facilitating the continued trading of Bitcoin and other cryptocurrencies in the Indonesian market.
“This partnership is something that will be very beneficial for Tokocrypto. Binance has the technical expertise, and we will be leveraging on that so that we can protect our customers’ assets with a very high level of confidence.”
Changpeng Zhao (CZ), Founder and CEO of Binance, stated:
“With fast technology adoption, strong economic growth, and the world’s fourth-largest population, Indonesia will become one of the leading centers 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 further enable the freedom of money.”
Binance.US launched OTC portal for trades worth $10,000 or more
The feature will allow users of Binance’s US affiliate to process orders worth $ 10,000 or more directly between customers, off of the normal exchange’s order book. The service is live in the 37 states in which Binance.US operates; it supports 12 cryptocurrencies as well as U.S. dollars. Besides, the exchange is working on receiving proper licenses in the remaining 13. Binance had previously rolled out OTC trading for its global exchange in January 2019.
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