Binance in talks to acquire Indonesian crypto exchange

Crypto major Binance is in negotiations to acquire the Indonesian crypto exchange Tokocrypto, according to sources familiar with the matter.

Pang Xue Kai, Tokocrypto’s CEO, will step down from his position after the deal is finalized, the sources added. They added that Tokocrypto will likely see layoffs following the takeover.

Pang Xue Kai, CEO and co-founder of Tokocrypto / Photo credit: Tokocrypto

Rieka Handayani, vice president of corporate communications, said in a statement to Tech in Asia that the company couldn’t comment on rumors and speculation.

“Tokocrypto’s focus is on building a sustainable business and actively continuing the development of the crypto asset industry which has grown significantly,” she added.

Tech in Asia has also reached out to Binance for comment.

In September, the Indonesian firm laid off 45 employees or about 20% of its workforce. At the time, Tokocrypto said that the decision came in anticipation of a continuous bearish trend in the crypto market and the global economy.

Its trading volume in the last 24 hours was around US$7 million, according to data from CoinGecko.

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The global crypto market, including in Indonesia, has been in decline this year. According to the country’s ministry of trade, the value of crypto transactions from January to September stood 266.9 trillion rupiah (US$17 billion), down 57.8% from the same period last year.

Binance had itself invested in Tokocrypto in 2020, entering the Indonesian market, aided by the fact that Tokocrypto has obtained a license from the local regulator.

Binance has recently used acquisitions and partnerships to enter new markets. For instance, it recently acquired Japanese crypto exchange Sakura Exchange Bitcoin (SEBC) to reenter the country. In Malaysia, Binance acquired a key stake in regulated digital-asset trading platform MX Global.

In December last year, Binance and a consortium led by Telkom’s MDI Ventures announced a joint venture to create a digital asset exchange in Indonesia. However, there have been no updates regarding the partnership since then.

Currency converted from Indonesian rupiah to US dollar: US$1 = 15,611 rupiah.