Tokocrypto’s native token is up more than 53% following reports that Binance is in talks to acquire the Indonesian crypto exchange. Binance previously invested in Tokocrypto in 2020 to facilitate the company’s growth and gain exposure in the growing crypto market in Indonesia.
Tokocrypto CEO to Step Down if Binance Completes the Takeover
Toko Token, a crypto coin issued by crypto exchange Tokocrypto, jumped more than 53% Tuesday. The price surge comes after reports that Binance is negotiating to acquire the Indonesian crypto bourse.
Tokocrypto CEO Pang Xue Kai is set to step down from the top position if the deal gets done, according to Tech in Asia. The report also adds the crypto exchange is likely to announce layoffs if Binance completes the acquisition. Tokocrypto’s vice president of corporate communications said it could not comment on rumors.
“Tokocrypto’s focus is on building a sustainable business and actively continuing the development of the crypto asset industry which has grown significantly.”
Tokocrypto reduced its workforce by 20% in September due to turmoil in the broader crypto market. Cryptocurrencies have been trading at multi-year lows in recent months amid harsh macroeconomic conditions and the collapses of several crypto projects.
Binance Continues its Acquisition Spree to Enter New Markets
The potential takeover comes more than two years after Binance invested in Tokocrypto, the first regulated crypto exchange in Indonesia at the time. Binance backed Tokocrypto to help facilitate the growth of its business and establish the crypto exchange’s leading services in the burgeoning Indonesian market.
If the deal gets done, it should not come as a surprise, given that Binance has been using acquisitions to enter new markets several times in the past. The world’s largest crypto exchange recently bought Japanese crypto bourse Sakura Exchange Bitcoin to reenter the market.
Binance also attempted to buy the embattled FTX last month, but the company walked away from the deal, citing serious financial issues at the rival exchange. FTX filed for bankruptcy shortly afterward.
The crypto market in Indonesia has also been affected by the broader market downturn. The value of crypto transactions in the period between January and September stood at $17 billion, down almost 58% year-over-year.
Earlier this year, Indonesian authorities tightened crypto regulations to protect consumers in the wake of the Terra-LUNA implosion. The new regulatory changes now require at least two-thirds of executives on crypto exchanges to be Indonesian residents.
This article originally appeared on The Tokenist
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