FTT flies 8.6% as FTX exchange expands operations to the crypto-friendly Bahamas

FTX, FTT, bahamas, regulation
image from medium.com

Key Takeaways:

  • FTX expands to the Bahamas in compliance with local financial regulatory laws.
  • The exchange officials agree with the necessity of such regulations.
  • Several on-chain metrics show bullish signs for FTT.

YEREVAN (CoinChapter.com) – FTX, the 9th ranking crypto exchange worldwide with a $4 billion daily transaction volume, expanded to the Bahamas. Its native token FTT jumped almost 9 percent in response. As the company announced on Sep. 20, the new subsidiary will act according to the rules set forth by the local law enforcement agency, considering the unstable climate on the crypto regulation front.

FTX in the Bahamas

FTX’s Bahamian subsidiary – FTX Digital Markets – has registered at the local Securities Commission. The registration under the Digital Asset Registered Exchanges Bill (DARE act) is necessary to make sure the exchange’s activity is compliant with law enforcement.

Sam Bankman-Fried, the Founder and CEO of FTX, pointed out the positive impact of such regulations.

“With this expansion through the DARE Act, we are further committing to providing all our clients with a safe, trustworthy, and compliant exchange. We are committed to maintaining a close working relationship with local regulators so that together we can navigate putting a comprehensive regulatory framework in place to help promote the growth of this nascent asset class.”

commented the CEO.

Brett Harrison, the president of FTX.US, also asserted that the US and the Bahamas regulations would give the company a chance to expand in the comprehensive framework around crypto exchanges.

“Because of a lot of the public disputes we’ve been seeing, I think this is getting even nosier. […] It’s completely necessary – and we’re very much for it”

said Mr. Harrison

Also read: US law enforcement targets crypto exchanges in and out of the country; Suex sanctioned

The exchange’s FTT token gained almost 9 percent on the expansion news and flashes bullish signs along the way.

FTT daily chart

The FTT/USD pair traded at $54.1 in the early European session Wednesday. The digital asset registered a green candle after days of sell-off incentive that rippled across the altcoin market. FTT’s uptrend kicked off from a significant resistance-turned-support line at 51.2.

The digital asset also approached its 50-day simple moving average (SMA-50; red wave on the chart below). If the ascent continues, FTT will seek additional support from the said wave.

FTT daily chart. Source: FTTUSD on TradingView.com
FTT daily chart. Source: FTTUSD on TradingView.com

Also read: FTX’s FTT token surges by 34% amid LedgerX parent firm acquisition news.

Moreover, some on-chain metrics from analytical platform Santiment point towards bullish development. For example, the platform tweeted that the results of the latest FTT analysis show that the number of active accounts is at an all-time high.

Number of FTT active adresses at an all-time high. Source: Santiment.net
The number of FTT active addresses is at an all-time high. Source: Santiment.net

The activation of addresses doesn’t necessarily signify a buying incentive. However, combined with the bullish price action, it does paint an optimistic picture. Additionally, FTT saw a rise in whale addresses (accounts holding 10,000 – 100,000 coins).

Increase in FTT whale accounts. Source: FTTUSD on TradingView.com
Increase in FTT whale accounts. Source: Santiment.net

The recent FTX expansion, combined with the on-chain metrics and the technical indicators, suggests a possible bullish continuation for FTT. However, the upcoming sessions will show if the prediction has merit.

Also read: Growing Bitcoin US stocks correlation amid Evergrande selloff disputes BTC’s digital gold narrative.

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