Australian crypto exchange Swyftx has decided to shut down its Earn program due to a lack of clarity on crypto product regulation.
Australian exchange Swyftx will shut down its crypto interest product this week, citing the country’s “changing regulatory landscape” for crypto products.
Starting January 10, the crypto exchange will no longer use the Earn program, which will allow users to send all earnings back to their trading wallets.
Although this decision is not welcomed by users, Swyftx says it plans to do what is best for the program in the future.
“While we believe in the value and potential of cryptocurrencies, what we need now is greater transparency in the regulation of crypto offerings like Earn.”
Swyftx made the announcement on December 27th, but it wasn’t known in time due to the holiday season.
The news comes after Australian authorities opened proceedings against fintech company BlockEarner and crypto product Finder.com for allegedly not having the required licences.
However, Swyftx has not completely shut the doors to Earn, with the exchange saying it will consider reopening the program once the rules are clear.
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In a statement to Cointelegraph, Swyftx said the funding was suspended due to “uncertain current conditions”.
“We hope to reopen following legislation on Australia’s interest in crypto offerings.” In the meantime, our focus is to continue working with regulatory authorities and governments to protect crypto users now and in the future,” he added.
First launched in May, Swyftx’s Earn program allows users to earn daily interest by submitting crypto tokens to Swyftx.
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The Australian Securities and Investments Commission has been scrutinizing Australia’s crypto service providers in recent months.
In addition to action against Block Earner and Finder.com in November and December, action was also taken against Qoin token developers in October last year for displaying its “false” tokens.
The Australian government is also working hard to regulate the crypto sector.
In December, the Australian Labor government announced it would release a consultation document in early 2023 as part of its strategic plan.
According to Australian Treasurer, Jim Chalmers, the consultation document will include regulation of certain crypto assets, as well as principles for licensing companies, asset protection and principles for customers.
Update Dec 9, 06:22 UTC: Added information from Swyftx.