MEXC Ventures, the investment arm of global crypto exchange MEXC, has invested in Triv, an Indonesian cryptocurrency exchange, at a US$200 million valuation.

Triv, founded in 2015, is licensed for spot trading, staking, and futures, and reports having over 3 million registered users.

The investment is part of MEXC Ventures’ strategy to expand in Southeast Asia, a region with accelerating digital asset activity.

Triv operates alongside other licensed exchanges in Indonesia, including Tokocrypto, Pintu, and Indodax. The amount invested by MEXC Ventures was not disclosed.

Triv has not previously disclosed any institutional funding, and it is unclear if this is its first external capital raise.

The deal comes as Indonesia introduced new cryptocurrency tax rules on August 1, doubling the tax on domestic exchanges to 0.21%, and increasing foreign platform taxes from 0.2% to 1%.

🔗 Source: The Block

🧠 Food for thought

1️⃣ International crypto firms bet on Indonesia despite fresh tax increases

MEXC’s investment in Triv came just days after Indonesia doubled crypto transaction taxes on August 1, suggesting strong confidence in the market’s long-term potential despite regulatory challenges 1.

The new tax framework significantly increased costs for crypto users, with domestic exchange taxes rising from 0.1% to 0.21% and foreign exchange taxes jumping from 0.2% to 1%, representing a substantial increase 1.

Yet institutional investors continue entering the market, with OSL Group completing a $15 million acquisition of local exchange operator Evergreen Crest Holdings in June, followed by MEXC’s strategic investment in Triv 1.

This trend indicates that investors view Indonesia’s underlying market fundamentals as resilient enough to absorb higher transaction costs, particularly given that crypto transaction values tripled to around $40 billion in 2023 1.

The continued investment activity suggests that established regulatory compliance may be more valuable to international firms than lower tax rates, especially in a market where local exchange users now exceed 20 million, surpassing the country’s total stock market investors 1.

2️⃣ Regulatory compliance commands premium valuations in emerging crypto markets

Triv’s $200 million valuation appears significant given its 3 million registered users represent just 15% of Indonesia’s total 20 million crypto exchange users 1.