The agency overseeing Indonesia’s crypto market has stopped the trading of FTX tokens on domestic platforms. The announcement comes after FTX, the exchange that issued the FTT token, filed for bankruptcy in the United States and was subjected to investigations by regulatory bodies around the world.

Indonesian Authority Orders Crypto Exchanges to Discontinue FTX Token Trading

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 its ticker FTT. According to a statement cited by Reuters, the order is in force since Monday, Nov. 14.

The move follows the filing for Chapter 11 bankruptcy protection on behalf of FTX and affiliated entities in the U.S. on Nov. 11. The court proceedings initiated by the exchange resulted in “a massive withdrawal and the price of the FTX token continued to drop dramatically,” noted the acting head of Bappebti, Didid Noordiatmoko, quoted by Antara news agency.

The FTX token is among 383 crypto assets mentioned in regulation issued by Bappebti earlier this year, CNN Indonesia pointed out in a report. The document establishes a “List of Crypto Assets Traded on the Physical Crypto Asset Market.”

The regulator carries out close supervision of the entities facilitating the trading of FTT, Didid also emphasized. The executive urged all these crypto platforms to monitor and analyze the developments with the token and ensure customer protection. Several exchanges registered with Bappebti were trading it.

In January of this year, FTX had a valuation of $32 billion and was among the largest crypto trading platforms on a global scale. Its recent collapse triggered investigations into the failed exchange by regulators in the U.S., the Bahamas, Japan, and Turkey and the suspension of its licenses, from Cyprus to Australia.

Between January and October 2022, FTT accounted for less than 0.04% of the total crypto transaction value in Indonesia. However, amid the current situation with the token, Bappebti intends to review the full list of registered crypto assets that are being traded in Indonesia. Last week, the government in Jakarta indicated it wants to transfer crypto supervision to the country’s Financial Services Authority (OJK) as part of a planned tightening of crypto regulations.