Binance-backed Indonesian crypto exchange Tokocrypto is eyeing an IPO

Binance-backed Indonesian crypto exchange Tokocrypto is looking to go public in the next two to three years.

Tokocrypto CEO Pang Xue Kai told Nikkei-owned DealStreetAsia that the exchange operator is already profitable, but before public listing, it has to be profitable for at least more than two years. Thus, an initial public offering or IPO is still two to three years down the road, said Kai.

In the meanwhile, Tokocrypto is aiming to grow its business, expand its operations to more parts of Indonesia and make crypto mainstream in the country, according to Kai.

Binance acquired a controlling stake in Tokocrypto last year. Founded in 2018, Tokocrypto is regulated by Indonesia's commodity futures trading regulator, Bappebti. Earlier this year, Tokocrypto launched its token offering via Binance and raised $7.5 million by issuing its native token TKO at $0.1, according to tracker Cryptorank. One TKO is currently priced at around $2, according to CoinGecko.

In separate news, Digital Currency Group-owned crypto exchange Luno is also reportedly looking to enter Indonesia. "Two people familiar with the development" told DealStreetAsia that Luno is in early-stage talks with conglomerate Lippo Group to set up a joint venture to start operations in the country. Luno is currently based in London and has a regional presence in Singapore and Cape Town, South Africa.

Trading cryptocurrencies is legal in Indonesia, though they are banned as a payment method in the country. The government of Indonesia recently said it is also planning to tax profit on crypto trades.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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