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The agency that oversees Indonesia’s crypto market has suspended trading of FTX tokens on domestic platforms. The announcement comes after FTX, the exchange that issued the FTT token, filed for bankruptcy in the US and came under investigation by regulatory bodies worldwide.
Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) has instructed digital asset exchanges in the country to stop trading the FTX token, also known by the ticker FTT. According to a statement cited by Reuters, the order has been in effect since Monday, November 14.
The move follows the filing of Chapter 11 bankruptcy protection on behalf of FTX and related entities in the United States on November 11. The legal proceedings initiated by the exchange resulted in “a massive withdrawal and the price of the FTX token continued to fall dramatically,” noted acting head of Bappebti, Didid Noordiatmoko, quoted by Antara news agency.
The FTX token is among 383 cryptoassets mentioned in regulations issued by Bappebti earlier this year, CNN Indonesia pointed out in a report. The document establishes a “List of cryptoassets traded on the physical cryptoasset market.”
The regulator closely supervises the entities that facilitate trade in FTT, Didid also emphasized. The leader urged all these crypto platforms to monitor and analyze developments with the token and ensure customer protection. Several exchanges registered with Bappebti traded it.
In January of this year, FTX had a value of $32 billion and was among the largest crypto trading platforms on a global scale. The recent collapse triggered investigations into the failed exchange of regulators in the US, the Bahamas, Japan and Turkey and the suspension of licences, from Cyprus to Australia.
Between January and October 2022, FTT accounted for less than 0.04% of the total crypto transaction value in Indonesia. Amidst the current situation with the token, Bappebti intends to review the entire list of registered cryptoassets traded in Indonesia. Last week, the government in Jakarta indicated that it wants to transfer crypto oversight to the country’s Financial Services Authority (OJK) as part of a planned tightening of crypto regulations.
Do you expect regulators in other countries to take similar action regarding the FTX exchange and FTT tokens? Tell us in the comments section below.
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