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Binance is utilizing the current market conditions to enter the Asian market. On December 19, BINANCE announced that it had taken a majority stake in the Indonesian cryptocurrency exchange Tokocrypto. Pang Xue Kai, the company’s founder, and outgoing CEO had resigned, and Binance had since appointed a new CEO.
To conduct business lawfully in Indonesia, according to CNBC Indonesia, Binance intends to gradually purchase all of Tokocrypto’s shares. The exchange has all necessary licenses from the Commodity Futures Trading Regulatory Agency (BAPPEBTI).
It is important to note that Binance has a long and strong partnership with the Indonesian exchange and has been investing in Tokocrypto since 2020.
“Tokocrypto came from our idea more than four years ago, and I am very proud to see every growth, achievement, and contribution that the company has made to advance Indonesia’s digital economy.”
Pang Xue Kai continued by saying that this choice was “carefully” made with the exchange’s future in mind to take advantage of all the potential possibilities Binance has to offer and create a second physical trading platform for crypto assets.
The crew at Tokocrypto had to be reduced, but interim CEO Yudhono Rawis emphasized that it was the best move to do to combat the difficult macroeconomic circumstances that were affecting the worldwide market.
“It is regrettable that we have had to reduce the size of the company to ensure we remain in a good position to cope with the uncertain macroeconomic conditions and we extend our sincerest apologies to the affected employees.”
By acquiring additional cryptocurrency exchanges, Binance is expanding into the Asian market and avoiding the time-consuming licensing procedures that have recently become more stringent as a result of the failure of numerous cryptocurrency exchanges and investment funds, including Three Arrows Capital, Voyager Digital, FTX, and Alameda Research, among many others.
