After being banned by Indonesian authorities, Binance can now operate legally in the country.
Others businesses enjoy the cold weather despite the crypto winter. By acquiring a third licensed crypto exchange, Binance is taking advantage of the current market conditions to expand into the Asian market.
As of Dec. 19, Binance confirmed that it had become the majority shareholder of the Indonesian cryptocurrency exchange Tokocrypto, appointing a new CEO following Pang Xue Kai’s resignation.
In a report by CNBC Indonesia, Binance plans to acquire Tokocrypto’s shares gradually so that it can operate legally in Indonesia, as the exchange has all regulatory permits from the Commodity Futures Trading Regulatory Agency (BAPPEBTI).
Since Binance invested in Tokocrypto in 2020, the Indonesian exchange has had a long and close relationship with the exchange.
Tokyocrypto’s Best Outcome
Xue Kai, who will become a member of Tokocrypto’s Board of Commissioners, praised Binance’s acquisition, saying it has greatly contributed to the Indonesian digital market’s development.
According to Pang Xue Kai, the decision to build an additional physical trading platform for crypto assets was taken “carefully” with the future of the exchange in mind.
In light of the challenging macroeconomic conditions affecting the global market, Tokocrypto’s interim CEO Yudhono Rawis regretted that the company had to downsize its team.
Binance expands into Asian markets
A number of crypto exchanges and investment funds have recently filed for bankruptcy, including Three Arrows Capital, Voyager Digital, FTX, and Alameda Research, so Binance is stepping into the Asian market by acquiring other crypto exchanges, eliminating tedious licensing processes.
Binance was banned from operating in Malaysia by the Malaysian Securities Commission in July 2021. Nevertheless, CZ’s exchange acquired Mx Global, a Malaysia-registered company, allowing Binance to operate legally there.
Binance acquired Sakura Exchange BitCoin (SEBC), a Japanese exchange regulated by Japan’s Financial Services Agency (FSA), according to CryptoPotato. Japan also banned Binance four years ago.