Binance Seeking Greater Crypto Adoption in Indonesia
According to Bloomberg, Binance is discussing with PT Bank Central Asia (BCA), owned by Indonesian billionaire brothers Michael and Budi Hartono, and PT Telkom Indonesia, the largest telecom operator in the country, about establishing a local cryptocurrency exchange. The news was revealed by people familiar with the matter.
Indonesia, with a population of about 273 million people, has many adult citizens who do not have access to financial services. If the discussion between Binance and the major Indonesian institutions scale through, will enable wider adoption of cryptocurrencies in the country, and also strengthen the exchange’s foothold in Indonesia.
Apart from controlling the Indonesian banking behemoth, the Hartonos brothers also own a telecom services firm, one of the world’s largest cigarette manufacturers, and an e-commerce business.
Also, banking giant BCA might form a collaboration with Binance via one of its entities, according to an anonymous source. However, a BCA representative said that there has been no discussion about the deal at the bank’s board meeting.
While Binance is yet to make an official statement about the latest development, a spokesperson for the exchange said:
“We are supportive of the sustainable growth of the blockchain industry globally and we are constantly looking at business opportunities in every country.”
Binance earlier acquired an undisclosed stake in Tokocrypto, an Indonesian regulated exchange platform back in 2020, which is considering a public listing in a few years.
While Indonesia banned crypto-based transactions, the government allowed citizens to trade cryptocurrency as a commodity. Back in May, there were reports that the country was considering taxing gains from crypto trading. Recently, the Indonesian central bank planned to use CBDC to ‘fight’ cryptocurrency.
Binance Planning to Obtain FCA License
Following the heat from various regulators globally, Binance has been seeking ways to improve its relationship with regulatory bodies. The company has not only made several new hires to ensure compliance but has also planned to change its operational model to make the exchange centralized with a headquarters, with Ireland being its choice location.
Binance.US, the American branch of the global Crypto exchange, is planning to launch an initial public offering (IPO). While the IPO is not immediate, Binance CEO Changpeng Zhao, said that the platform would need to raise more funds before going public.
In November, Zhao said that he was in talks with sovereign wealth funds to get them to invest in the company. This move could improve Binance’s standing with regulators.
Although the Financial Conduct Authority (FCA), the U.K.’s regulatory watchdog earlier declared back in June that Binance was not authorized to operate in the country, the exchange in December said that it was seeking an FCA approval. According to the company’s CEO:
“We’re making a number of very substantial changes in organizational structures, product offerings, our internal processes, and the way we work with regulators. We want to continue to establish a presence in the U.K. and serve U.K. users in a fully licensed and fully compliant manner.”