- Swyftx, an Australian cryptocurrency exchange, has chosen to discontinue its Earn programme since the legality of crypto products is unclear
- Swyftx said they are “dedicated to doing what is best for the programme in the near term,” even though the choice may be “disappointing” for users.
Swyftx, an Australian cryptocurrency exchange, has announced that it will be discontinuing its Earn program due to the uncertain regulatory landscape surrounding crypto products in the country.
The Earn program, which was first introduced in May, allows users to earn daily income by borrowing various crypto tokens from Swyftx. However, the exchange has stated that it will be refunding all Earn balances to users’ trade wallets and ending the program on January 10th.
In a statement, Swyftx said that while it believes in the potential of cryptocurrencies, more clarity is needed on the regulation of offerings like Earn. The exchange added that it plans to consider reopening the program once the regulatory rules are clearer, but its priority is to engage with regulators and the government to protect existing and future Australian crypto users.
The decision follows legal action taken by Australian regulators against Block Earner, a fintech company, and cryptocurrency yield products on Finder.com for allegedly being marketed without proper authorization.
The Australian Securities & Investments Commission has also taken action against the creators of the Qoin token for making “misleading” claims about their token.
The Australian federal government has also increased its efforts to regulate the cryptocurrency industry, with the Australian Labor Party announcing in December that it will publish a consultation document in the first half of 2023 as part of its token mapping program.
The document, according to Australian Treasurer Jim Chalmers, will detail how specific crypto assets should be regulated and will include frameworks for business registration, asset custody, and consumer safeguards.
The discontinuation of the Swyftx Earn program highlights the challenges faced by the cryptocurrency industry due to regulatory uncertainty and the importance of clear guidance from regulatory authorities.
This is necessary in order to foster innovation and user confidence in the market. The decision by Swyftx to end its Earnings program may be disappointing for users, but the exchange is committed to doing what is best for the program in the short term.