Leading cryptocurrency exchange Binance is set to fully acquire Indonesia-based Tokocrypto, after owning a 100% stake in the exchange.
As early as 2020, Binance has invested in Tokocrypto and owned about 60% of the exchange shares. According to Coindesk Indonesia, Binance will gradually increase its stake to around 100%.
Binance CEO Changpeng Zhao confirmed the report, saying that Binance has pumped more funds to increase ownership of the Indonesia-based exchange.
The deal will see Binance purchase the remaining 40% stake in Tokocrypto, to become the sole owner of the regulated cryptocurrency exchange.
Tokocrypto co-founder Pang Kai said the acquisition will help the exchange leverage Binance’s capabilities to further contribute to boosting Indonesia’s digital economy.
Once acquired, Pang Kai will step down as CEO, while Yudhono Rawis will serve as interim CEO.
Tokocrypto cuts 58% of staff
Tokocrypto interim CEO Yudhono Rawis said the exchange will streamline its operations and focus solely on the exchange business unit.
Additionally, Rawis added that due to turmoil market, the exchange will lay off about 58% of its staff.
“It is regrettable that we had to downsize the company to ensure that we remain in a good position to deal with uncertain macroeconomic conditions and we express our sincere apologies to the affected employees,” Rawis added.
According to Rawis, the exchange will support affected employees and help refer them for jobs at other Web3 companies, including Binance.
Following the news, Tokocrypto’s TKO token has increased by more than 10% to trade at $0.32.