Illustration by Angela Zillich.
Binance had originally acquired a large stake of Tokocrypto (TKO) in May 2020. As of yesterday, they have acquired an additional stake to take controlling interest in Indonesia's largest crypto trading firm.
$TKO, Tokocrypt's exchange token, was up 40% on the news, building on the gains it had made earlier in the month when rumors first emerged that Binance was acquiring the crypto exchange. In total, the $TKO price is up 66% since the start of December. According to a tweet from Binance CEO Changpeng Zhao, Binance, one of the world's largest cryptocurrency exchanges, has made a cash injection into Indonesian crypto exchange Tokocrypto, they now own close to 100% of Indonesia's largest crypto exchange.
In recent months, Binance has been on a buying spree, acquiring Sakura, a licensed Japanese crypto exchange, and MX Global, a licensed Malaysian exchange. These acquisitions allow Binance to operate in these countries without having to obtain a license itself. These series of investments are aimed at expanding the Binance's presence in Asia.
In November, Binance announced that it had secured a crypto custody license in Abu Dhabi, which allows it to provide digital asset custody to institutional clients in the UAE capital. Binance also holds a virtual asset license from Dubai's Virtual Asset Regulatory Authority (VARA).
In addition to its acquisitions in Asia, Binance operates legally in over ten countries worldwide, including Italy, New Zealand, Poland, Lithuania, and the United States, where it operates as Binance.us. This year, the company also received licenses in Spain, Kazakhstan, Bahrain, and France.
The other day, they also made a bid and commitment to buy the assets of American Voyager Digital, another strategical move, that time for the important US market.
As a result of the deal, Tokocrypto founder Pang Xue Kai will step down as CEO, with Yudhono Rawis taking over as interim chief. Pang Xue Kai will remain on the company's board of commissioners. Tokocrypto was reportedly considering an initial public offering in 2021, although this never materialized. The exchange will also cut its workforce by 58% and halt diversification into non-exchange businesses and products.
Tokocrypto is Indonesia's leading and most trusted digital exchange for crypto assets, they are the first entity in Indonesia to be registered with the Trade and Futures Exchange Ministry (BAPPEBTI). The company was founded by a group of crypto enthusiasts with the goal of promoting the use of blockchain technology and digital assets in Indonesia.
The TKO platform offers users access to digital investment opportunities in the Indonesian market, decentralized offerings, and access to yield farming for multiple cryptocurrencies. $TKO is the native utility token of Tokocrypto and can be used for a variety of platform benefits, including participation in CeFi programs and cross-platform DeFi use cases. Additionally, TKO tokens can be used as a payment gateway in the Tokocrypto NFT marketplace, known as TKO NFT Arcade, which is the first of its kind in Indonesia and serves as a platform for emerging young artists and NFT projects.