Binance, the world’s largest cryptocurrency exchange, today announced that it has set up a joint venture with the venture capital arm of Telkom Indonesia, the country’s largest telecommunication company, to develop a new digital asset exchange there.
Fast facts
- Binance said in a statement that it has teamed up with MDI Ventures — a US$830 million multi-stage venture investment arm of Telkom Indonesia — to establish a joint venture to “expand the blockchain ecosystem in Indonesia.”
- To develop a new exchange platform in Indonesia, Binance said it will provide its asset management infrastructure and relevant technology to support the new venture.
- “Our ambition at Binance is to grow the blockchain and cryptocurrency ecosystem globally, and this initiative in Indonesia is a significant step in that direction,” Changpeng Zhao, founder and CEO of Binance, said in the statement. “With fast technology adoption and strong economic potential, Indonesia could become one of the leading centers of the blockchain and crypto ecosystem in Southeast Asia.”
- Binance’s latest move in Indonesia comes as a rare piece of good news as it has encountered regulatory woes in many jurisdictions this year. Just on Monday, Binance said its Singapore entity has withdrawn its application to the Monetary Authority of Singapore (MAS) for a license to operate a regulated crypto exchange in the country, while last week the company disclosed it was acquiring an 18% stake in Hg Exchange, a private securities exchange that has obtained a recognized market operator license by MAS.
- On top of Singapore, similar regulatory actions have been taken in countries including the United States, Japan, Italy, Australia, the U.K. and South Africa. Earlier this month, Binance CEO Changpeng Zhao told the Sunday Telegraph that the company is working to rebuild its operations in the U.K. after it was told to close down its business there back in June.
- Despite Indonesia’s huge population and market potential, the National Ulema Council, the nation’s most influential religious council, in November said using crypto assets as a currency is forbidden for Muslims, according to a Bloomberg report. Regardless, Indonesia has seen a vibrant scene related to crypto. An August report by DappRadar showed that interest in non-fungible tokens had come mainly from the United States and Indonesia.