Tokocrypto, an Indonesian cryptocurrency exchange, has achieved a significant regulatory milestone by securing a full license under the country’s Commodity Futures Trading Regulatory Agency (Bappebti). This development marks a crucial step in the exchange’s efforts to consolidate its position in the Indonesian market.
Transition to Full Licensing
On September 9, Tokocrypto received the Physical Crypto Asset Trader (PFAK) license from Bappebti, granting it full authority to operate as a physical crypto asset trader within Indonesia. This license not only ensures compliance with national trading regulations but also signifies the platform’s maturity and readiness to meet stringent operational standards.
Since 2014, cryptocurrency exchanges in Indonesia have been categorized as “prospective crypto exchanges.” In 2019, Tokocrypto initially registered as a Prospective Physical Crypto Asset Trader (CPFAK), aligning with Bappebti’s requirements for all exchanges to seek formal authorization as a precursor to full licensing.
Receiving the third PFAK license issued in Indonesia, Tokocrypto’s CEO, Yudhono Rawis, highlighted that this achievement is integral to the firm’s strategy to lead the cryptocurrency trading space in the country. Currently, there are 35 other exchanges still classified under the prospective category, indicating Tokocrypto’s advanced position in regulatory compliance.
In 2023, Tokocrypto emerged as the largest exchange in Indonesia by trading volume, holding a dominant 43% market share among the country’s top three centralized exchanges, according to CoinGecko. Its main competitors, Indodax and Upbit Indonesia, held 42% and 15% market shares, respectively.
Binance, a global leader in the cryptocurrency exchange market, has played a significant role in Tokocrypto’s development. The investment journey began in 2020 when Binance made a significant, albeit undisclosed, investment in Tokocrypto. This move was part of Binance’s strategic efforts to strengthen its foothold in the Indonesian market.
Increasing Stake
In 2022, Binance further increased its stake in Tokocrypto, which former Binance CEO Changpeng Zhao described as an injection of more cash to increase shareholding. This evolving partnership culminated in Binance announcing Tokocrypto as its subsidiary, suggesting a controlling interest in the Indonesian exchange.
The full licensing of Tokocrypto by Bappebti is a testament to the maturing crypto regulatory environment in Indonesia, which aims to balance market growth with investor protection. This regulatory clarity is expected to boost investor confidence and foster a stable trading environment.
| Year | Market Share (%) | Comparison |
|---|---|---|
| 2023 | 43 | Leading |
| 2022 | 38 | Second |
| 2021 | 35 | Third |
Tokocrypto’s full regulatory approval underlines its compliance with Indonesian laws and its commitment to providing secure and reliable services to its customers. With Binance’s backing, Tokocrypto is well-positioned to maintain its market leadership and potentially expand its services further in the region. The ongoing evolution of regulatory frameworks and market dynamics in Indonesia will likely continue to influence the strategic decisions of cryptocurrency exchanges operating within the country.
