Swyftx crypto exchange returns deposits and closes the earn program
2023.01.09 02:00
Swyftx crypto exchange returns deposits and closes the earn program
Budrigannews.com- Swyftx, an Australian cryptocurrency exchange, plans to discontinue its crypto-interest product this week due to the country’s “constantly changing regulatory landscape” for crypto products.
The “Earn” program will be discontinued by the cryptocurrency exchange on January 10 and users will see their entire Earn balances returned to their trade wallets.
Swyftx stated that it is “committed to doing what is best for the program in the near term” despite the fact that the decision may be “disappointing” for users.
“While we believe in the value and potential of cryptocurrency, what we currently need is greater clarity on the regulation of crypto offerings such as Earn.”
Swyftx posted the announcement on December 27, but due to the holidays, most people missed it.
The news comes just a few weeks after Australian regulators took action against the fintech company Block Earner and the crypto yield products offered by Finder.com for allegedly being offered without the necessary licensing.
However, Swyftx has not permanently closed the door on Earn; the exchange has stated that it will consider reopening the program when the rules are clearer.
Swyftx told Cointelegraph that “uncertainty of the current regulatory context” was the reason it was ending its Earn offering.
Once we have established rules in Australia regarding interest-yielding cryptocurrency offerings, we hope to reopen it. In the interim, “our priority is continuing to engage positively with regulators and the government to protect current and future crypto users in Australia,” it added.
The Earn program, which Swyftx first introduced in May, allowed users to lend specific crypto tokens to Swyftx and earn daily interest on those tokens.
In recent months, the Australian Securities & Investments Commission has been actively looking into Australian providers of crypto products.
It also took action against the Qoin token creators in October of last year for “misleading” representations of its token, in addition to the actions it took in November and December against Block Earner and Finder.com.
The federal government of Australia has also increased its efforts to regulate the cryptocurrency industry.
As part of its token mapping initiative, the Australian Labor Government made the announcement in December that it would publish a consultation paper in early 2023.
According to Australian Treasurer Jim Chalmers, the consultation paper will discuss frameworks for company licensing, asset custody, and consumer protections in addition to how specific crypto assets should be regulated.
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