Binance-Backed Tokocrypto Secures PFAK License in Indonesia

Coinspeaker
Binance-Backed Tokocrypto Secures PFAK License in Indonesia

Tokocrypto, Indonesia’s popular crypto trading platform and a Binance subsidiary, has officially obtained its status as a regulated Physical Crypto Asset Trader (PFAK) in Indonesia. This regulatory greenlight grants Tokocrypto full power to operate as a physical crypto asset trader within Indonesia’s evolving cryptocurrency landscape.

The announcement, made on Monday, follows years of stringent regulatory scrutiny by the country’s Commodity Futures Trading Regulatory Agency (Bappebti). Notably, Tokocrypto, officially known as PT Aset Digital Berkat, was previously operating as a Prospective Physical Crypto Asset Trader (CPFAK) in the region. Securing the PFAK license highlights the trading platform’s persistent efforts to comply with Indonesia’s strict regulatory framework.

This development comes as Tokocrypto continues to experience massive growth in Indonesia. The platform’s user base has crossed 4.5 million in 2024, with its monthly trading volume increasing by an impressive 138%.

The approval confirms that Tokocrypto adheres to the regulator’s stringent standards, providing a safe and dependable platform for crypto investors. The platform’s Chief Executive Officer (CEO), Yudhono Rawis, noted the importance of the PFAK license in realizing the company’s vision of becoming Indonesia’s leading crypto platform. Rawis stated that securing the license represents a major step toward achieving his company’s long-term goals and maintaining high compliance standards.

The Indonesian government is gradually progressing in regulating the crypto industry, with Bappebti playing a central role in overseeing the industry. The agency works closely with other institutions, such as the central bank (Bank Indonesia), tax authorities, and law enforcement to regulate crypto trading. However, despite growing interest, Bank Indonesia still does not recognize cryptocurrencies as legal payment instruments.

Bappebti has applications from around 35 crypto exchanges for the regulatory license. To operate legally in the country, the platforms are required to register with self-regulatory organizations like the CFX apart from obtaining this license. Interestingly, Tokocrypto is the third trading platform to receive this regulatory nod in Indonesia.

Binance CEO Richard Teng took X to praise Tokocrypto for securing the PFAK license and contributing to Web3 development in the region. He also noted Binance’s efforts toward regulatory compliance, not just in Indonesia but globally. Binance is currently boosting its compliance measures worldwide, with plans to onboard 1,000 new employees by the end of this year, 200 of whom will focus on compliance.

Teng brings a wealth of expertise in regulatory compliance, having previously held important positions in the sector. Just last week, Binance gained regulatory approval from Kazakhstan’s financial authorities, moving closer to obtaining full licensing in the country.

Binance-Backed Tokocrypto Secures PFAK License in Indonesia