Blockchain is big in Indonesia, but Tokocrypto wants to make it bigger

Cryptocurrency is on the rise in Indonesia. In 2021, crypto trading in the country racked up a collective US$59.8 billion in transactions, while the number of Indonesians who have crypto assets grew to 7.4 million.

Industry experts have also pointed to the decentralized nature of blockchain as a solution to many of the problems the archipelago faces with its financial system, such as the inability to reach far-flung areas, the lack of access to secure financial services, and the high cost of digital transactions.

However, while much has been said about the potential of blockchain in Indonesia, it has yet to get off the ground, according to Pang Xue Kai, the CEO and co-founder of cryptocurrency exchange Tokocrypto.

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

“[People] keep claiming that blockchain tech has a lot to benefit Indonesia, but so far, we still haven’t seen a lot of this technology take form,” he says. “There’s a lot of groundwork that still needs to be done.”

In light of the slow development of Indonesia’s blockchain scene, Pang and his team decided to lead by example and spearhead mainstream adoption and use of the technology in the archipelago.

Supporting the growth of blockchain

Founded in 2018 as a crypto brokerage, Tokocrypto has become one of Indonesia’s largest crypto exchanges, registering a daily average trading volume of US$190 million in 2021. Having seen success as an exchange, the firm decided to expand into other aspects of blockchain. Last year, it launched the Tokoverse, a multi-service ecosystem that aims to simplify and combine crypto activities onto a single platform.

According to Pang, the Tokoverse is designed to expand Indonesians’ access to crypto-based services. It does so by equipping users with the knowledge, tools, and infrastructure they need to become active crypto participants, putting in place the foundations for blockchain tech to develop further in the country.

In doing so, the Tokoverse would not only bring blockchain tech to the masses, but also tap into a growth opportunity for Tokocrypto. By fostering a bigger base of crypto users, the company is enabling new investors that would eventually feed back into its ecosystem via the Tokocrypto exchange.

Laying the foundations

Aside from the cryptocurrency exchange, the Tokoverse includes NFT marketplace TokoMall, education arm TokoScholar, and incubator and accelerator program TokoLabs. These are all woven together by the TKO coin, the firm’s utility token.

Pang says TokoMall offers a “different take” on the traditional NFT marketplace by reimagining products from major Indonesian banks and brands as crypto assets.

“We want to act as a bridge between the digital and real, and we’re working on partnerships that would grant us access to the mass retail market,” he adds.

The TokoLabs program helps potential blockchain startups scale sustainably and enable Tokocrypto to enter Indonesia’s lucrative blockchain venture building industry. In 2021, the country’s crypto startups received US$72.3 million in funding, second only to Singapore (US$256 million) among Southeast Asian countries.

Pang (left) with BRI Ventures’ CEO Nicko Widjaja at the signing of a memorandum of understanding during the launch of the Tokocrypto Sembrani Blockchain Accelerator / Photo credit: Tokocrypto

Tokocrypto also supports startups launching new tokens through initial DEX offerings via its TokoLaunchpad service. It has created a network of physical community spaces known as T-Hubs that connects developers with enthusiasts, providing opportunities for blockchain startups to get off the ground.

Education is key

Pang stresses that Tokocrypto isn’t interested in building up Indonesia’s entire crypto ecosystem on its own. Instead, the company wants to help lay a strong foundation for the country’s blockchain space through the Tokoverse.

“The crypto industry is very new – with that comes a lot of uncertainty and perhaps fear about customer protections and the impact on our conventional financial institutions,” he says. “There are always going to be bad players, but we have to defend against them because once our public image is impacted, the entire industry will be set back when it’s still trying to take root.”

Education and awareness are fundamental pillars of Tokocrypto’s strategy to revolutionize crypto in Indonesia. Pang sees the company’s initiatives as its ways to not only promote the benefits of crypto, but also bring more nuanced understandings of the technology.

One such initiative is its Kampus Merdeka partnership with the Ministry of Education, which trains digital talent in the ins-and-outs of the crypto industry.

Another is TokoScholars, an education initiative inspired by popular play-to-earn game Axie Infinity. TokoScholars incentivizes participants with a “learn-to-earn” scheme that teaches everyday Indonesians about crypto so they can earn through trading, NFT minting, decentralized finance investing, and other crypto-related activities.

“Real-world problems, not first-world problems”

Aside from its Tokoverse offerings, of which there are still many in the pipeline, Tokocrypto also collaborates with government agencies on crypto regulations as part of its advocacy to drive greater blockchain growth in Indonesia.

Though crypto enthusiasts are largely anti-regulation, Pang says they are important for managing financial services’ inherent risks, like terror funding and money laundering, especially in the face of illicit crypto transactions reaching US$14 billion in 2021.

“A lot of people think that you don’t want know-your-customer processes in a decentralized world, but I think all those are necessary to ensure this space can continue to thrive and grow,” he explains. “We are focused on being a role model in how to ethically run an exchange, and we want other players to follow in our footsteps to improve the environment for everyone.”

In the future, Pang moots the possibility of a “crypto corridor” between Indonesia and his native Singapore that could open up opportunities for collaboration between the two countries.

“Indonesia can leverage Singapore’s expertise in forming conducive regulations, while Singapore can leverage the openness of Indonesia’s markets,” he explains. “In that way, entrepreneurs can really explore how the technology can be utilized to solve real-world problems, not first-world problems.”

Tokocrypto is a crypto asset digital exchange in Indonesia that aims to be more than just an exchange through its creation of the Tokoverse, an ecosystem of blockchain services.

Learn more about Tokocrypto and its Tokoverse here.

This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.