Binance Acquisition of Tokocrypto Complete, 58% Employees Fired

Binance has completed its takeover of Tokocrypto, an Indonesian cryptocurrency exchange.

According to a report by Coindesk Indonesia, the multinational cryptocurrency firm had announced plans to acquire nearly 100% of Tokocrypto. However, the exchange also fired 58% of its employees following the completion of the deal citing market conditions.

Tokocrypto, launched in 2018, is the primary cryptocurrency trading platform in Indonesia. It claims over 2.5 million users and cites Binance as a supporter. 

Chief Executive Officer of Binance, Changpeng “CZ” Zhao acknowledged the acquisition in a tweet, writing, “Binance was the majority shareholder of Toko from the beginning. Just injected more cash and increased our shareholding a bit.”

The CEO and co-founder of Tokocrypto, Pang Xue Kai, is reportedly stepping down from his role, with interim CEO Yudhono Rawis taking over. Nonetheless, the co-founder will continue to serve on Tokocrypto’s board of directors. 

Co-founder and CEO Pang Xue Kai expressed his delight at Tokocrypto’s rapid expansion and highlighted: 

“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.”

Binance Eyes Expansion in Indonesia

Earlier, TheCoinRise reported that Binance is in discussion to purchase the Indonesian crypto exchange Tokocrypto. Given that Tokocrypto holds a crypto license in Indonesia, the investment is seen as a way for Binance to expand its presence in the country. 

Binance has expanded by merging with other companies and entering new industries. For example, it just acquired Bitcoin exchange Sakura Exchange to re-enter the Japanese market (SEBC). Binance has also made a sizable investment in MX Global, a reputable digital asset exchange situated in Malaysia.

According to the company’s Linkedin page, there are now about 290 people working for the company. Tokocrypto also terminated 45 employees in September.

Since the news first surfaced in Indonesia, TKO, Tokocrypto’s exchange token, is up 40% on the day, as reported by CoinGecko. Increased by roughly 66% compared to the month before to the emergence of purchase speculations.