Binance has announced that its Indonesian subsidiary, Tokocrypto, has received approval as a Physical Crypto Asset Trader (PFAK) from Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti).
A Physical Crypto Asset Trader (PFAK) is a business that deals with the buying and selling of crypto assets, such as Bitcoin and Ethereum. Unlike purely online cryptocurrency exchanges, PFAs focus on the physical aspects of trading these digital currencies. This includes handling transactions that might involve physical representations of cryptocurrencies or providing services that link digital assets to real-world currencies.
PFAKs facilitate trades between various cryptocurrencies and traditional currencies like the Indonesian Rupiah. They also assist customers in securely storing their crypto assets and managing the transfer of these assets between different digital wallets.
To operate legally, a PFAK must obtain approval from regulatory bodies, ensuring adherence to specific rules and guidelines designed to protect consumers and maintain market integrity.
Tokocrypto expansion
Tokocrypto, a cryptocurrency exchange in Indonesia, started operations in 2018 and has rapidly become a key player in the crypto market. After applying for a license in 2019 and undergoing a lengthy process to meet all requirements, Tokocrypto now legally operates as a crypto asset trader in Indonesia with its PFAK license.
Since its inception, Tokocrypto has seen remarkable growth. By December 2021, the platform boasted over 2 million registered users, a significant increase from just 250,000 in 2020. Daily trading volumes also surged, reaching over $191 million, highlighting its active user base.
Tokocrypto provides various services, including a crypto exchange for trading digital currencies, a mobile app, an NFT marketplace called TokoMall, and its cryptocurrency named TKO.
TKO is notable for integrating features of both centralized finance (CeFi) and decentralized finance (DeFi), offering versatility to users. The platform aims to establish a comprehensive crypto ecosystem in Indonesia, featuring the use of a stablecoin called BIDR, pegged to the Indonesian Rupiah.
In other news, Binance gets regulatory approval from Kazakhstan’s Astana Financial Services Authority (AFSA).
Tokocrypto and Binance
In 2020, Tokocrypto received an investment from Binance, one of the world’s largest crypto exchanges, and launched Tokocrypto 2.0, enhancing its trading experience and security. The platform has also partnered with several companies to promote cryptocurrency use in Indonesia.
Richard Teng, CEO of Binance, praised Tokocrypto for its success, stating that it demonstrates the exchange’s commitment to regulatory compliance and building a robust and transparent crypto market in Indonesia. He added that Binance will continue to support Tokocrypto in its mission to grow the Web3 ecosystem in the region.
Yudhono Rawis, CEO of Tokocrypto, described the PFAK license as a key milestone in the company’s aim to become Indonesia’s leading crypto trading platform. “We are proud to be the third exchange in Indonesia to receive this license,” said Yudhono.
He noted that 35 other crypto exchanges are still awaiting approval, and this license enables Tokocrypto to provide better services to its users.
