Even after so many days have passed, the FTX debacle continues to haunt the entire cryptocurrency industry. The impact of the FTX exchange’s crash has spread throughout the crypto-verse.
Investors from all over the world connected directly and indirectly with the FTX exchange have been left devastated. This is something that the regulators do not approve of at all.
Therefore, they have started taking necessary measures from their end to put an end to the FTX exchange’s constant damage.
The UAE Regulators are Not Happy
In light of the recent events, the Dubai Virtual Assets Regulatory Authority (VARA) has taken the necessary actions it deems necessary for the safety of its locals.
As per the latest reports, the VARA has suspended FTX’s license to operate in the region. It was just recently when the VARA issued a license to the FTX for operating and spreading its crypto services in the UAE.
The FTX platform was making necessary arrangements that would allow it to offer cryptocurrency services to the locals in the UAE including Dubai.
With the license being suspended, the company is barred from setting foot in the local investment industry in the region.
A public Announcement has been made
The VARA has already made a public announcement on the matter to clear out any confusion and ambiguity on the matter.
The announcement confirms that the Minimum Viable Product (MVP) license for the FTX has been revoked for the MENA region.
The authority has confirmed that they are closely monitoring the entire that involves the FTX platform and the bankruptcy it has filed in the United States.
All the entities falling under the FTX brand are required to comply with the bankruptcy. While facing these circumstances, the regulatory authority cannot allow FTX to operate in UAE.
This is for the safety of the investors as well as their funds. The authority has confirmed that they have revoked FTX’s license before it could start operating in the UAE.
Therefore, none of the investors or their investors were affected as a result of the revocation of the exchange’s license.
The VARA to Actively Monitor Crypto Firms
Following the incident, the VARA has announced that they are going to increase their monitoring of the cryptocurrency firms operating in the UAE.
They will ensure that none of the firms are exposed to similar kinds of issues so the investors’ interests can be protected.
Impact on FTX Token (FTT)
This is another major drawback for the already struggling FTX Token (FTT) because its value has suffered another dip. The data shows that the trading price of FTT has recorded a 0.73% dip in the past 24 hours.
The weekly performance of FTT shows the token has dipped over 6%, and it is currently trading at a low of $1.39.