Pintu, Indonesia’s first mobile native cryptocurrency wallet and trading platform, has raised $35 million from some of blockchain’s biggest venture funds — putting the company on track to expand its team and product offerings in the near future.
The Series A was led by Lightspeed Venture Partners, a technology-focused investor with broad exposure to blockchain, fintech and data analytics. Several other high-profile venture funds also participated in the raise, including Alameda Ventures, Blockchain.com, Pantera Capital, Coinbase Ventures, Castle Island Ventures and Intudo Ventures.
With the funds, Pintu plans to hire additional talent, roll out new product offerings and fuel future adoption of cryptocurrency in Indonesia. Jeth Soetoyo, Pintu’s co-founder and CEO, said his platform will help Indonesians “overcome the barriers [to] financial inclusion.” He further explained the value proposition that Indonesia poses to crypto adoption:
“As the fourth-most populous country in the world and with only 1-2% of Indonesians having exposure to cryptocurrencies, there is an immense opportunity for retail investors to gain access to diversified and dynamic investment opportunities through Pintu’s unique crypto-asset trade offerings.”
Indonesia’s crypto industry is still in its nascent stage as more companies navigate a complex regulatory framework for buying and selling digital assets. The country’s Commodity Futures Trading Regulatory Agency, also known as BAPPEBTI, gave crypto the green light in February 2019, classifying the asset class as a speculative commodity. However, Bank Indonesia, the country’s central bank, maintains a strict ban on cryptocurrency payments.
Related: Indonesia’s central bank marshals staff to enforce crypto payments ban
Pintu is recognized as a licensed cryptocurrency broker under BAPPEBTI, which allows the company to serve retail investors. Currently, the broker offers 16 cryptocurrencies, including nonfungible tokens. Indonesia is home to over 6.6 million cryptocurrency investors, which is triple the country’s public equity investors, according to the Ministry of Trade.
As Cointelegraph reported, lawmakers in the country are mulling a new tax framework for cryptocurrency traders. In May of this year, a spokesperson for the Indonesian Directorate General of Taxes said crypto profits may soon be classified as capital gains.
Related: Binance-backed Indonesian crypto exchange considers IPO