Binance increases investment in Indonesia’s regulated Tokocrypto cryptocurrency exchange

Binance increases investment in Tokocrypto, Indonesia's regulated crypto exchange.

Binance has increased its investment in Tokocrypto — Indonesia’s regulated cryptocurrency exchange. This was announced by the company’s CEO, Changpeng Zhao.

Binance was the majority shareholder of Toko from the beginning. Just injected more cash and increased our shareholding a bit. pic.twitter.com/NIeYYxzPdU

— CZ 🔶 Binance (@cz_binance) December 19, 2022

“Binance has been the majority shareholder of Toko from the very beginning. It simply put more money in and slightly increased its stake,” Zhao wrote.

In this way he refuted the Indonesian subsidiary CoinDesk‘s report about Tokocrypto’s acquisition. The outlet also noted that the platform’s CEO Pan Xue Kai would step down — his duties would allegedly be performed by Yudho Ravis.

Media also cited the latter on layoffs at Tokocrypto and clarified that the downsizing would affect about 58% of the staff. A Binance spokesman confirmed to ForkLog that there were layoffs, but did not provide a precise figure.

“[…] downsizing has been the most difficult step for Tokocrypto. While painful, it is a necessary decision from the team’s perspective, and we hope our stakeholders understand its justification. In the coming weeks Tokocrypto will focus on continuing to work with Binance as our shareholder to develop long-term goals and strategies,” the statement said.

A Binance spokesperson added that the Indonesian company would provide support to the laid-off employees.

In 2020 Binance invested an undisclosed amount in Tokocrypto. The funds at the time were intended to be used to expand services and product lines, upgrade technology, expand domestically, and implement blockchain-education initiatives in the region.

In May 2021 Tokocrypto conducted a TKO token sale on the Binance platform. Over the past 24 hours the asset rose 39.5% (CoinGecko).

As of 1 May 2022 in Indonesia is charged VAT on crypto-asset transactions and capital gains tax on such investments at rates of 0.1% in both cases.

The legislation treats digital currencies as exchange-traded commodities, but prohibits their use as a means of payment.

In September authorities announced plans to launch a state Bitcoin exchange by the end of 2022.

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