Australian crypto exchange Swyftx has decided to close its Earn program due to a lack of clarity around crypto products regulation.
Australian crypto exchange Swyftx is set to close its crypto exchange this week, citing the “changing regulatory environment” for crypto products in the country.
On January 10, the crypto exchange will stop operating the “Earn” program, where users will return all their earnings to their trading wallets.
Swyftx said that while the decision may be “disappointing” for employees, it is “trying to do what is best for the program shortly.”
“Although we believe in the benefits and potential of cryptocurrency, we now need greater understanding in the regulation of crypto offerings such as Earn.”
Swyftx published this post on December 27 but didn’t see much at the time the break was given.
The news comes just weeks after Australian regulators began taking legal action against fintech firm Block Earner and cryptocurrency exchange Finder.com for allegedly being offered without the required licenses. Swyftx has not closed the door on Access for good, however, and the exchange indicates that it will consider launching the program once the rules are simplified.
In a statement to Cointelegraph, Swyftx said it was closing its Earn offering due to “uncertainty in the current regulatory environment”.
“We hope to open it as soon as we have a law in Australia regarding interest-bearing crypto offerings. In the meantime, our priority is to continue to work closely with regulators and the government to protect current and future Australian crypto users,” he added.
First launched in May, Swyftx’s Earn program allowed users to earn daily interest in certain crypto tokens by lending them to Swyftx. The Australian Securities & Investments Commission has been investigating Australian providers of crypto products in recent months.
In addition to actions against Block Earner and Finder.com in November and December, it also took action against the creators of the Qoin token in October of last year for “misleading” representations of its token. Australia’s federal government has stepped up its efforts to regulate the crypto sector.
In December, the Australian Labor government announced that it would publish a consultation paper in early 2023 as part of its benchmarking plan. Australian Treasurer Jim Chalmers said the research paper will cover how certain crypto assets should be regulated in terms of trading licences, asset management, and consumer protection.
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