According to SWT organizers, Nintendo has come down on the organization and forced it to end the competition
The smash World Tour is canceled. According to the team behind SWT they received a letter from Nintendo indicating they were not allowed to continue the series. The announcement came in the form of a long-form medium post which provides SWT perspective on the situation.
In the post, the SWT team speaks of the creation of the SWT and how they feared this exact scenario back in November 2021. As it didn't come to pass, they went ahead for 2022 while also confirming and trying to work with Nintendo on officially licensing the circuit.
There the SWT team also alleges a conversation between Panca Cup's CEO and Beyond the Summit that amounted to threats to force BTS to shut down their Smash events. LDeeep has confirmed these conversations, equating them to a "protection racket". At the same time, they allege that the same CEO was looking to sign tournaments for the Panda Cup circuit in exclusivity, meaning they could not be part of the Smash World Tour.
According to the post, for over seven months, until November, Nintendo did not respond to SWT's communication regarding the safety of the circuit and its finals. On November 23rd, SWT claimed to have been contacted by a Nintendo representative who told them that they would not be allowed a commercial license for their tournament or any activity in 2023. Furthermore, they were not to continue the series.