HAQQ Network co-founder points to Indonesia’s crypto hub potential

Binance announced on its blog on Sept 9 that its Indonesian subsidiary company, Tokocrypto, had secured a Physical Crypto Asset Trader (PFAK) license from the Southeast Asian country’s regulator, Bappebti. Compliant global growthThe company put itself forward as a candidate for licensing in 2019, and with the licensing award, it became the third crypto entity to be licensed. In its post on Binance Square, Binance claimed that the “PFAK license strengthens Tokocrypto’s position as a regulated and trusted platform in Indonesia's Web3 ecosystem.”  It called the five-year process “rigorous,” indicating that the license acquisition was critical not just for Tokocrypto but also relative to the overall development on Indonesia’s crypto and Web3 industry. The licensing now enables the company to trade as a fully authorized physical crypto asset trader in Indonesia. The licensing award comes just days after it was reported that Binance is inching ever closer to obtaining a full trading license in Kazakhstan, indicating that the company is expanding its global presence in a compliant manner. This development is likely to be significant for Binance and its subsidiary in terms of global growth efforts, given that a 2023 Chainalysis report found that ranked in terms of the pace of crypto adoption, Indonesia was placed seventh, making it an important market for the company.Photo by Fahrul Razi on UnsplashBinance CEO Richard Teng commented on the development, stating:“Binance is committed to fully supporting Tokocrypto in its mission to drive the growth of the Web3 ecosystem in the region.” Tokocrypto CEO Yadhono Rawis classed the company becoming “the third exchange to receive [a] PFAK license in Indonesia” as an important achievement in a “market which has 35 prospective crypto exchanges registered with Bappebti.”  Growing user-baseIn its Binance Square post, Binance also highlighted that Tokocrypto’s user base has now grown to 4.5 million users. Additionally, Tokocrypto is responsible for 43% of crypto trading within the Indonesian market in 2023, according to CoinGecko data. It’s understood that Binance has held a majority stake in Tokocrypto since a very early stage in the firm’s development.  Crypto tax revenue surgeRecently published data revealed that tax revenue generated through Indonesia’s crypto sector has surged. It appears that tax revenues have increased despite calls for the authorities to implement crypto tax policy reform. Earlier this year CoinDesk Indonesia speculated that high crypto taxation rates were responsible for a slump in crypto-related tax revenues. In March reports emerged that crypto transactions had increased by over 200%, with Tokocrypto’s Rawis attributing the uptick to a recovery in the Bitcoin unit price across all markets. In early 2025, it’s expected that crypto industry oversight will be transferred from Bappebti to the Financial Services Authority (OJK). With that, it’s thought that some changes may be made to how crypto-related taxes are applied.

Singapore Gets with Banks to Provide Guidance on Crypto BusinessesIn a move to provide clarity and guidance to financial institutions dealing with cryptocurrencies, the Monetary Authority of Singapore (MAS) is reportedly working with banks to develop new vetting procedures for crypto clients.According to a recent Bloomberg report, the MAS plans to provide more detailed guidance to banks on how to properly screen and monitor customers involved in cryptocurrency transactions.©Pexels/PixabayRegulatory clarityThe decision to provide guidance on crypto businesses comes as regulators around the world struggle to keep up with the rapidly-evolving digital currency industry. Many governments have been grappling with how to regulate cryptocurrencies in the face of concerns over money laundering, fraud, and other illicit activities.Singapore, however, has taken a more progressive stance on digital currencies, with the MAS recently announcing plans to create a regulatory framework for crypto derivatives trading. The country’s financial watchdog has also been working to improve AML (anti-money laundering) and CFT (combating the financing of terrorism) measures relative to crypto transactions.The MAS’s efforts to provide guidance to banks on crypto businesses are part of this broader push to promote responsible use of digital currencies in Singapore. By providing clear and detailed guidance to financial institutions, the regulator hopes to prevent illegal activities from taking place while also promoting the growth of the crypto industry.The MAS’s approach is seen as a positive development for the crypto industry, as it provides a clear framework for financial institutions to work within. This could help to boost confidence in the crypto market, potentially leading to increased investment and adoption.Striking the right balanceAt the same time, however, some industry observers have expressed concerns that overly strict regulations could stifle innovation and limit the potential of cryptocurrencies. They argue that a balance must be struck between protecting consumers and promoting innovation in the digital currency industry.Despite these concerns, the MAS’s efforts to provide guidance on crypto businesses are likely to be welcomed by financial institutions and industry participants alike. As the use of digital currencies continues to grow, it is becoming increasingly important for regulators to provide clear and comprehensive guidance on how to operate within this rapidly-evolving industry.Previous failuresSingapore hasn’t always gotten its approach to cryptocurrency right. In 2021, the MAS put global crypto exchange Binance on its investor alert list. Binance felt compelled to curb its service offering in the city state. The consequence of that action was that a disproportionate number of Singaporeans proceeded to open accounts with FTX only later to get caught up in the collapse of the exchange.The Monetary Authority of Singapore’s decision to provide guidance on crypto businesses is bullish for the digital currency industry. By providing clear and detailed guidance to financial institutions, the regulator is promoting responsible use of cryptocurrencies in Singapore while also boosting confidence in the market. However, there is a need to strike a balance between protecting consumers and promoting innovation in the industry, as overly strict regulations could stifle growth and limit the potential of cryptocurrencies.

Digital asset exchange business Bullish has filed confidentially for an initial public offering (IPO) in the United States. The Financial Times reported on June 11 that the IPO had been filed with the Securities and Exchange Commission (SEC) in recent weeks. Choosing to file the IPO confidentially will have enabled the firm to delay public disclosure, allowing it to progress with its preparation for the IPO and reveal financials closer to the point at which it goes public. Back in February, Bloomberg reported that the company was looking at the possibility of executing an IPO, with investment banking and financial services firm Jefferies understood to have been advising the firm. This latest report confirms that Jefferies will work as the lead underwriter in relation to the IPO deal.Photo by Markus Winkler on PexelsHong Kong tiesBullish is a subsidiary company of Block.one, a blockchain software company founded by Brendan Blumer and Dan Larimer, best known for having established the EOS.IO blockchain network. Both companies have strong ties with Hong Kong.  The Bullish exchange is licensed by the Hong Kong Securities and Futures Commission (SFC). It has also obtained licensing from the Gibraltar Financial Services Commission (GFSC) and the German Federal Financial Supervisory Authority (BaFin).  The exchange business is jointly operated by corporate entities registered in Hong Kong and Gibraltar. The company maintains offices in Hong Kong, Gibraltar, Singapore, New York, London, Frankfurt and the Cayman Islands.  The business is also being backed by Hong Kong billionaire Richard Li and American entrepreneur Peter Thiel, co-founder of PayPal, Palantir Technologies and Founders Fund. Blumer, who is based in Hong Kong, founded Bullish in 2021 and currently serves as Bullish chairman. The company is understood to have in the region of 275 employees with Tom Farley leading it as CEO. Farley previously fulfilled the role of president at Intercontinental Exchange’s NYSE group. Positive climate for crypto IPOsAmid a more positive crypto climate in the United States, crypto-related IPOs appear to be back in favor. Leading stablecoin issuer Circle executed an IPO earlier this month with the offering being 25x oversubscribed. Following the success of the Circle IPO, BitMEX co-founder Arthur Hayes asserted on X that it would lead to a plethora of crypto-related IPOs over the next few years. He likened that anticipated wave of IPOs to the flurry of initial coin offerings (ICOs) that occurred back in 2017. Earlier this month American crypto exchange platform Gemini confidentially filed for an IPO in the U.S. A Bloomberg report published in March suggested that rival exchange business Kraken is planning an IPO for Q1 2026.  There has been some speculation that Ripple, the American technology company that developed and supports XRP and the XRP Ledger (XRPL), may be a prime candidate for an IPO. Taking to the X social media platform, “Pentoshi,” a pseudonymous crypto market analyst with over 860,000 followers on X, said that a Ripple IPO “feels only logical.” The analyst added that if the company executed an IPO, it would likely weigh in at “some insanely stupid valuation.”