Exchanges looking to get approval will need to show proof of strong risk management and security, and Binance has that in spades.
Binance Hits a Snag in Singapore
Entrance into Indonesia’s market is coming after Binance faced significant pushback in Singapore – another growing crypto market. The exchange announced earlier this month that it plans to close all of its services in Singapore after it withdrew its application with the Monetary Authority of Singapore (MAS) for a digital payment token services license.
Binance.sg has already stopped onboarding new users, and the exchange has also blocked Singaporeans from depositing any assets – whether crypto or fiat – to the exchange.
For now, Binance Singapore users can still buy and sell crypto. However, support for this will be closed on January 12th, 2022.
Cryptocurrency exchange Binance is considering launching a new cryptocurrency exchange in Indonesia, a source familiar with the matter says.
The venture is in collaboration with Indonesia’s richest family, the Hartonos who run PT Bank Central Asia (BCA), one of the major banks in the country, according to a Bloomberg post on December 10.
PT Telkom Indonesia is also part of the ongoing discussion, an Indonesian multinational telecommunications conglomerate. The partnership, when concluded, will help widen Binance’s reach in the country with a large number of unbanked people.
The news comes at a time when PT Telkom Indonesia is scouting for major players to partner with in the blockchain/crypto industry.
Binance has already been on the news lately for halting their crypto trading services for the hindrances in the regulatory compliances set by Singapore in the second and third quarters of 2021. They have acquired an 18% stake in a local private securities exchange, Hg exchange. They also led another massive $1.5 million funding round for the Asian tokenized messaging platform, the BBS Network.
Thus, this new venture can be a great start to expand their name into the Asia Pacific region.
Indonesia also has positive crypto regulations, and Binance will be looking to leverage that as well.
Interestingly, this won’t be the only crypto venture for Binance in Indonesia. Back in May 2020, the exchange invested in Tokocrypto – a local regulated crypto exchange in Indonesia. Tokocrypto became the first exchange in the country to get regulatory approval from the Commodity Futures Trading Regulatory Agency, making it a hotbed for anyone looking to get a piece of the crypto pie in the country.
For now, it would be interesting to see how Binance’s new exchange can compete.
It would first need to register with the Commodity Futures Trading Regulatory Agency, although that shouldn’t be a problem.
“We are supportive of the sustainable growth of the blockchain industry globally and we are constantly looking at business opportunities in every country,” the spokesman said.
Telkom Indonesia is studying new opportunities to partner with top players through its venture-capital arm MDI Ventures, especially considering the potential in the blockchain and crypto markets and the opportunity to leverage the group’s connectivity capabilities, said Mr Ahmad Reza, the firm’s vice-president of corporate communications and investor relations.
A representative of BCA said the lender had not discussed such a strategic investment at its board meeting.
Indonesia’s government has been supportive of crypto assets, allowing them to be traded alongside commodity futures as an investment option, and pushing to set up a crypto-focused exchange by the end of the year.
A senior vice president of the company, Ahmad Reza, said the firm’s connectivity business would complement crypto businesses such as an exchange to reach the country’s over 270 million people.
Indonesia’s huge crypto market
Binance remains the world’s largest crypto exchange by trading volume. Although the exchange already has Indonesian users, it has not fully explored the country’s market potential. The large population and the government’s openness towards crypto could help significantly in making Binance a huge crypto presence.
Already, Southeast Asian financial institutions are exploring ways to enter the cryptocurrency space to harness their digital capabilities fully.
The largest lending firm in the region, DBS Holdings LTD is one of such financial services providers.
JAKARTA (BLOOMBERG) – Binance Holdings is in talks with Indonesia’s richest family, the Hartonos, and a state-owned telecoms operator to set up a cryptocurrency trading exchange, according to people with knowledge of the matter.
The world’s largest crypto exchange has been in discussions with PT Bank Central Asia (BCA), controlled by sibling billionaires Budi and Michael Hartono, and PT Telkom Indonesia on the venture, the people said, asking not to be named because the matter is private.
A partnership between Binance, BCA and the country’s largest telecoms operator would spur wider adoption of cryptocurrencies in Indonesia, the world’s fourth most-populous nation, where many adults have little access to bank lending and other forms of formal finance.
From then on, users would only be able to withdraw and move their funds to third-party platforms or wallets and withdraw their funds (in Singaporean dollars). By January 13th, all accounts should have been closed.
“We recommend that you take action as soon as possible before the deadline for account closure (13 February 2022). Please note that BAS will not be held responsible for any losses that result from your failure to withdraw your assets and close your account by 13 February 2022,” the exchange claimed.
Interestingly, Binance still has a presence in Singapore.
The exchange recently acquired an 18 percent stake in Hg Exchange (HGX) – a private securities exchange in the country.
Binance, the leading crypto exchange company, is reportedly in discussions with Indonesia’s wealthiest family, the Hartonos, for launching their new crypto exchange. As per the recent report by Bloomberg, Binance is now willing to finalize a new crypto venture with the Hartonos, who control the PT Bank Central Asia(BCA). This bank and a state-owned telecom firm PT Telkom Indonesia are owned by the two billionaire siblings, Budi and Michael Hartono.
As per the reports, BCA will be an active member of this partnership. However, they would be a separate business entity. The terms of the partnership could vary while finalizing the deal. Binance was already a renowned name for their previous venture. This crypto trading platform will now release its second venture with the Hartonos if this deal gets finalized.
PT Telkom Indonesia, the country’s largest state-owned telecommunications firm, is also expected to be in on the deal.
The Bloomberg report claimed at the time that the banking institution would probably enter into the partnership using a separate business entity.
While those were rumors at the time, they have now been confirmed. Earlier this month, a press release confirmed that Binance had partnered with MDI Ventures, the venture capital of PT Telkom, to establish a new exchange platform in the country. As the joint announcement noted, the partnership will seek to improve blockchain technology adoption across Indonesia.
Both companies believe that the country’s population- which stands at over 240 million – has a lot to benefit from blockchain.