The large cryptocurrency exchange Binance is reportedly in discussion to purchase the Indonesian cryptocurrency exchange Tokocrypto.
Following the completion of the transaction, Tokocrypto CEO Pang Xue Kai would leave his position, the sources said. They also noted that after the takeover, layoffs are expected to occur at Tokocrypto.
In a statement to Tech in Asia, Rieka Handayani, vice president of corporate communications, claimed that the company would not be commenting on rumours and speculation.
The growth of the crypto asset sector has been phenomenal, and therefore “Tokocrypto’s focus is on building a sustainable business and actively continuing the development of the crypto asset industry which has grown significantly,” she said.
Forty-five people were let go from the Indonesian company in September, representing nearly 20% of the staff. Tokocrypto explained their choice at the time by pointing to the ongoing bearish trend in the cryptocurrency market and the worldwide economy.
According to data compiled by CoinGecko, its 24-hour trading volume was close to $7 million.
This year has seen a widespread downturn in the cryptocurrency sector, including Indonesia. The value of crypto transactions in the country was 266.9 trillion rupiah (US$17 billion) from January to September, down 57.8% from the same time last year, as reported by the country’s ministry of trade.
In 2020, Binance made an investment in Tokocrypto, allowing it to access the Indonesian market with the help of Tokocrypto’s local license.
Binance Continues Expansion In Crypto Winter
Recently, Binance has expanded into new markets through mergers and collaborations. To re-enter the Japanese market, for instance, it just bought the cryptocurrency exchange Sakura Exchange Bitcoin (SEBC). Binance has purchased a significant portion of MX Global, a regulated digital asset trading platform based in Malaysia.
Binance and a group spearheaded by Telkom’s MDI Ventures announced a partnership in December 2021 to launch a digital asset exchange in Indonesia. However, since then, no further information on the collaboration has been made public.