This is Binance’s growing investment in Asia’s third licensed cryptocurrency exchange as it expands its global reach. The company was showing signs of trouble.
Binance has increased its stake in Indonesian cryptocurrency exchange TocoCrypt on the 19th.
Binance CEO Changpeng Zhao (CZ) called the deal “just to inject more cash and increase our holdings a bit.” Changes are expected on the stock exchange.
Tokocrypto founder Pang Xue Kai has stepped down as his CEO and will be replaced by his Yudhono Rawis as acting president. Pang Xue Kai continues to serve on the company’s board of directors.
CNBC quotes Pang Xue Kai as saying:
“After careful consideration of this decision, we have determined that the best course of action for Tokocrypto is to leverage Binance’s resources to create a new physical trading platform for cryptocurrencies.”
On December 6th, reports surfaced that Binance was in talks with his Tokocrypto, resulting in a 50% increase in the value of his TKO coin. It was also reported that there would be multiple layoffs if the acquisition went ahead. Tokocrypto said in September he laid off 45 employees, or 20% of his workforce. He also founded his T-Hub, a community space, and his TokoMall, a non-fungible token marketplace, around this time.
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Binance made his first investment in an Indonesian company in 2020.
Launched in 2018, his Tokocrypto was the first cryptocurrency exchange to receive approval from Indonesia’s Commodity Futures Regulator (Bappebti) the following year. Since then, approval from this institution is mandatory for cryptocurrency exchanges. By March of this year, he had 17 companies approved by his Bappebti.
See: Celebrity Tokens: Signs of Growing Crypto Adoption in Indonesia
Binance acquired licensed Japanese cryptocurrency exchange Sakura in November and MX Global, a licensed Malaysian exchange, in March. Binance can operate without obtaining its own license by acquiring a company that already has a license.
Update Dec 20 01:31 UTC: Title changed, previously he implied that Binance acquired his 100% of Tokyocrypto.