Binance Acquires Indonesia-Based Crypto Exchange Tokocrypto

In an apparent bid to expand its footprint across Asia, cryptocurrency exchange Binance (CRYPTO: BNB) has completed the acquisition of the Indonesian exchange Tokocrypto.

Following the resignation of Pang Xue Kai, the exchange's co-founder, Binance revealed that it had acquired a controlling stake in Tokocrypto and that it had appointed a new CEO.

“Tokocrypto came from our brainchild more than four years ago. I am very proud to see every growth, slogan, and contribution the company has made to advance Indonesia's digital economy,” Xue Kai said in a press release.

See Also: Binance.US To Acquire Assets Of Bankrupt Crypto Lending Firm Voyager: What It Means For Customer Funds

“This decision was made after careful consideration. We decided that the best step for Tokocrypto going forward is to utilize Binance's capabilities to build a further physical trading platform for crypto assets,” he added.

Confirming the move, Binance CEO Changpeng Zhao said Binance was the majority shareholder of Tokocrypto from the beginning and that the company has just injected more cash and increased its shareholding a bit.

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

Tokocrypto Will Downsize, Says Interim CEO

Tokocrypto's interim CEO, Yudhono Rawis, stated that the company will have to downsize due to "uncertain macroeconomic conditions."

An "employee adjustment of around 58%" is anticipated, according to Rieka Handayani, vice president of corporate relations for the exchange.

In September, Tech In Asia reported that owing to the crypto winter, the exchange had let go of 45 employees and bifurcated its community space and NFT marketplace.

After the announcement, Tokocrypto's exchange token (CRYPTO: TKO) shot up 40% compared to the previous day, according to CoinMarketCap.

It has increased by about 66% from the month when the initial acquisition speculations surfaced.

Next: FTX May Try To Claw Back All Payments, Political Contributions Made By Former Execs