Tokocrypto Hopes the Blockchain Ecosystem in Indonesia is More Competitive
Tokocrypto users reach 3,2 million people, with 43% market share; aiming to achieve profitability by the end of this year
Tokocrypto hopes that the blockchain ecosystem in Indonesia will be more attractive in the future, supported by non-restrictive regulations. So far, the only blockchain derivatives that have become popular are cryptocurrencies, even though there is still a lot of other potential that has not been exploited.
CEO of Tokocrypto Yudhono Rawis said that the transition of the crypto regulator from Bappebti to OJK is expected to stimulate the platform exchange such as Tokocrypto so that it can collaborate with players under OJK regulations, such as banking, payments and insurance. This transition is underway and is expected to be completed in January 2025.
“Business collaboration with the web2 ecosystem is needed. We are of the view that perhaps the place [to promote crypto] is not on social media, but with user from the bank, e-wallets. "Bank customers are the best quality customers because they have gone through KYC and are continuously monitored," said Yudho at the Tokocrypto Crypto Outlook 2024 event, yesterday (31/1).
At the same time, he also hopes that tax regulations in the crypto industry can be more competitive in order to increase public participation to be more active. There are three schemes that he thinks can be implemented:
- Back to the way it was before, namely just capital gains tax or top tax capital gain.
- Revise Value Added Tax (VAT), because according to the PPSK Law, crypto assets are not included in commodities, but refer to financial assets.
- Slightly reduce the amount of tax that is currently in effect, considering that the crypto industry is still new in Indonesia.
“Tax is important but we see that the crypto industry is still in its infancy, this [tax amount] is bigger than shares. Is it worth it? "It's better to give it the opportunity to grow first," added Head of the Development and Development Bureau of CoFTRA, Tirta Karma Senjaya.
Previously, the government officially imposed tax on crypto assets through the Republic of Indonesia Minister of Finance Regulation Number 68/PMK.03/2022 which took effect on May 1 2022. The VAT charged was 0,11%, while the PPh was 0,1%.
apart tax rules competitive situation, Yudho hopes that several other regulations can be realized by the regulator, one of which is regulations related to derivative crypto asset products. Abroad the value of derivatives is much greater than spot trading.
“Regulated business is a mandatory choice for players that they have to make comply so that there will be no more disasters. "Because now the stigma is still negative," said Yudho.
The use of blockchain in Indonesia so far is still limited trading crypto assets targeting retail investors. Meanwhile, abroad, its use has spread to corporations and has given rise to new trends, including web3 wallet, Real World Assets (RWA), Decentralize Physical Infrastructure (DePin), and real-time conversion to fiat currency.
In fact, recently a number of countries in Asia are competing to become crypto centers in Asia, such as Vietnam, Japan and Hong Kong. The government is actively encouraging the ecosystem with stimulants.
Vietnam for example, they are increasing it developer blockchain and crypto projects. Meanwhile, Japan is becoming increasingly friendly with Web3, by encouraging the development of blockchain-based games, friendlier taxes, and creating related laws stable coin.
Crypto asset industry
Based on Bappebti data, there were 18,51 million crypto asset investors last year, an increase of 9,8%. Transactions reached IDR 149,25 trillion, down 51,29% from the previous IDR 306,4 trillion. Even though it is down in Indonesia, globally this industry continues to experience positive developments. One of them is optimism regarding spot Bitcoin ETFs and anticipation of the Bitcoin halving.
Total capitalization rose 108% to IDR 13.470 trillion. The most traded currency is Bitcoin (50,2%), the rest is dominated by Ethereum, USDT, Binance Coin, and Solana.
Meanwhile, Tokocrypto recorded significant achievements, dominating around 43% of the market based on CoinMarketCap data. More than 3,2 million users and average daily transactions exceeding $30 million, with a yearly reach of $4 billion, covering more than 380 types of tokens and coins. It is claimed that this volume is 30% higher than its closest competitor.
Yudho also said that currently Tokocrypto's business model is in line with its plans for profitability by the end of this year. This will be supported by a three-fold growth in transaction volume to $12 billion and a two-fold increase in users to 6 million investors.
“Our team is great read, only 60 people. Last year our business was very positive, even though we weren't there spend marketing budget at all, just use it affiliate. "
One of the product initiatives that has been released is Easy Buy-Sell and InstanTrade to accommodate lay investors who are just starting out trading.
New initiative for TKO
To support innovation, Tokocrypto made major changes to Toko Token (TKO), Tokocrypto's original utility token which aims to advance the adoption of blockchain technology in Indonesia.
TKO will be managed by the TKO Foundation, an entity that is independent and different from Tokocrypto. This will ensure the continuity of TKO and provide new utility that would not be possible, if TKO were just a simple token exchange.
The main focus of the TKO Foundation is on the development of the TKO token. TKO Foundation has released whitepaper who introduced roadmap of and a new management team with the determination to develop this local crypto asset project further in the future. The market capitalization of TKO token has reached $52 million as of January 1, 2024, making it the largest local token.
There are 780 thousand TKO holders recorded as investors coming from Indonesia, followed by China, Turkey, Russia, Vietnam and India.
Tokocrypto also supports local blockchain projects, namely official ones listingits Creo Engine (CREO). CREO is a blockchain project that introduces the concept Play-to-Earn with a primary focus on Real World Assets (RWA). Token holders can access exclusive features and services within the ecosystem, such as early access to new dApps and games, discounts and rewards.