Binance Holdings Ltd. may set up a cryptocurrency exchange in Indonesia in collaboration with the country’s wealthiest family.
Aside from PT Bank Central Asia (BCA), which is controlled by the billionaire Hartono family, the world’s largest cryptocurrency exchange is in talks with state-owned PT Telkom Indonesia.
The potential agreement would benefit all parties involved. Binance would strengthen its position in the country’s emerging crypto space, where it already has a stake in Tokocrypto, one of the country’s largest crypto exchanges.
Meanwhile, the Hartonos, some of the country’s most powerful businessmen, would be able to invest in cryptocurrencies through the venture. In addition to the bank, the family owns e-commerce companies, a telecommunications services company, and a major cigarette manufacturer. According to sources, BCA’s partnership with Binance may be formed through another related entity.
Furthermore, the transaction would complete Telkom Indonesia’s efforts to partner with top players, which it has been doing through its venture-capital arm MDI Ventures, according to Ahmad Reza. The firm’s vice president of corporate communications and investor relations is excited about the opportunity to tap into the potential in crypto markets by leveraging the group’s connectivity capabilities.
Cryptocurrency in Indonesia
The anticipated joint venture would almost certainly contribute to the increasing adoption of cryptocurrencies in the Southeast Asian archipelago. Many people in the world’s fourth-largest country lack bank accounts and other traditional forms of finance.
However, Indonesia is also home to the world’s largest Muslim population, so a recent decree may have some ramifications. The National Ulema Council (MUI), the country’s religious leaders’ council, declared cryptocurrency haram, or forbidden, last month. The authority determined that crypto is prohibited as a currency because it retains elements of uncertainty, wagering, and harm. Although Asrorun Niam Sholeh, the MUI’s head of religious decrees, acknowledged that crypto could be traded as a commodity if it adheres to Shariah tenets and can demonstrate a clear benefit.
The Indonesian government, for its part, has been largely supportive of crypto assets. It refused to impose a ban on a market with 370 trillion rupiah ($26 billion) in transactions in the first five months of the year. Instead, it allowed crypto assets to be traded as an investment alongside commodity futures. The government does not permit the use of cryptocurrency as currency, in accordance with religious authorities.