Binance-backed crypto broker and exchange platform Tokocrypto has been granted a Physical Crypto Asset Trader (PFAK) license from Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti). This is a significant achievement for the Binance-backed crypto exchange as there are only three other crypto exchanges who have the PFAK license.
Tokocrypto’s journey began in 2019 when the company registered as a Prospective Physical Crypto Asset Trader (CPFAK) with the regulatory authority.
In a statement released on Monday, Binance said: “The company has now completed a rigorous licensing process to become a fully authorized physical crypto asset trader in Indonesia.” Currently, 35 different crypto firms are awaiting the PFAK license in the country.
Tokocrypto was founded in 2018. Initially, it received seed funding from QCP Capital, a Singapore-based digital assets management and trading company. The former Binance CEO Changpeng Zhao confirmed an investment in Tokocrypto in May 2020, one year after it had successfully registered as a prospective physical crypto assets trader with the local authority.
Notably, Tokocrypto has seen consistent growth over the past five years. According to Binance, the platform now has over 4.5 million users. The exchange also claims that their monthly average trading volume has jumped 138% year-on-year (YoY).
Commenting on Tokocrypto’s accomplishment, Binance CEO Richard Teng said that this will position them as a leading company in the Web3 ecosystem in Indonesia.
Taking to X, Teng also vowed support for Tokocrypto.
Amidst Their Growing Popularity Indonesia Mulls New Tax Regime For Digital Assets
Despite the Indonesian government’s strict stance against crypto companies, cryptocurrency use has surged over the past year. According to the country’s financial regulator, there were nearly 19.75 million cryptocurrency users in Indonesia as of March 2024.
In response to the rising popularity of cryptocurrencies, regulatory authorities in Indonesia are considering changes to the tax structure through the reclassification of digital assets. Currently, digital assets like cryptocurrencies are taxed as commodities in Indonesia.
While it is unclear how these changes will impact crypto transactions for Indonesian investors and traders, reports suggest that adjustments to the tax structure may not take effect until October 2024.
