Binance has formed a joint venture with a consortium led by Telkom Indonesia’s $830-million venture capital arm. Binance aims “to expand the blockchain ecosystem in Indonesia with the development of a new Indonesian-based digital asset exchange.”
Binance Building Cryptocurrency Exchange in Indonesia
Blockchain and cryptocurrency infrastructure provider Binance said on Wednesday it has formed a joint venture with a consortium led by Telkom Indonesia’s $ 830 million venture capital arm, MDI Ventures (MDI). Telkom Indonesia is the country’s largest telecommunications company.
The aim of the joint venture is “to expand the blockchain ecosystem in Indonesia with the development of a new Indonesian-based digital asset exchange,” the announcement details, elaborating:
Binance will provide world-class asset management infrastructure and technology to support the development of the new exchange platform.
“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,” Binance CEO Changpeng Zhao (CZ) commented.
Zhao revealed last week, “We are making a number of very important changes in organizational structures, product offerings, our internal processes and the way we work with regulators. He said in particular that his company is “in the process of putting in place proper offices, legal entities, proper board of directors, proper governance structures in most places, including the UK” .
This week, Binance announced that it is shutting down its crypto exchange in Singapore. “Binance made a sizable investment into regulated exchange HGX last week. This investment made our own application somewhat redundant. We will continue to work through our partners to grow the crypto industry in Singapore,” explained Zhao.
The Indonesian government has previously indicated that it will not impose an outright ban on cryptocurrency like China has done. Crypto assets are allowed to trade with commodity futures contracts in Indonesia, but cannot be used as currency. The government is also pushing to set up a crypto exchange, and Bank Indonesia has explored a central bank digital currency (CBDC).
