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Homepage > News > Finance > Indonesia issues third exchange license Indonesia’s financial market watchdog has issued a new exchange license to Tokocrypto amid claims that the licensing favors a few big firms. The Indonesian Commodity Futures Trading Regulatory Agency, commonly known as Bappebti, issued the Physical Crypto Asset Trader (PFAK) license to Tokocrypto this week as the Southeast Asian country reins in its burgeoning digital asset industry. Tokocrypto, which hit 4.5 million registered users this year, first registered as a Prospective Physical Crypto Asset Trader in 2019, in line with Bappebti’s new ‘crypto’ market requirements. In the following years, the watchdog subjected the exchange to “a rigorous licensing process,” which it has now completed. CEO Yudhono Rawis says the license is a major step for the exchange and the entire Indonesian digital asset sector. “We are proud of this achievement to become the third exchange to receive PFAK license in Indonesia, the market which has 35 prospective crypto exchanges registered with Bappebti,” Rawis stated. Tokocrypto is a Binance subsidiary following a 2022 acquisition. Indonesia’s regulator is killing competition: Industry leader While the Indonesian Bitcoin sector lauded the license, some have raised concerns that the watchdog could be inadvertently plunging the sector into “monopolistic or oligopolistic market conditions.”  Speaking to one media outlet, Tuhu Nugraha alleged that the licensing regime has become almost impossible to comply with for most players, that only three companies have obtained the license in one of the world’s most active digital assets markets serves as proof of the demanding requirements, he says. Nugraha is the leader of the Indonesia Applied Digital Economy and Regulatory Network (IADERN), an institution that fosters the development of the country’s digital economy by connecting shareholders and advising regulators. Nugraha expressed concern that with only three players, Indonesians would have little…

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Filed under: News - @ September 18, 2024 3:27 am