Australian crypto alternate Swyftx is ready to shutter its crypto-interest product this week, citing a “continuously altering regulatory panorama” for crypto merchandise within the nation.
From Jan. 10, the crypto exchangewill stop to function the “Earn” program, with customers having their complete Earn balances returned to their commerce wallets.
Swyftx mentioned whereas the choice is perhaps “disappointing” for customers, it’s “dedicated to doing what’s finest for this system within the close to time period.”
“Whereas we consider within the worth and potential of cryptocurrency, what we at the moment want is bigger readability on the regulation of crypto choices akin to Earn.”
The news comes just weeks after Australian regulators launched actions against fintech firm Block Earner as well as Finder.com’s crypto yield products for allegedly being offered without the required licensing.
Swyftx has not permanently closed the door on Earn though, with the exchange saying it would consider re-opening the program once the rules are more straightforward.
In a statement to Cointelegraph, Swyftx said it was closing its Earn offering due to “uncertainty of the current regulatory context.”
“We hope to reopen it once we have settled rules in place in Australia around interest-yielding crypto offerings. In the meantime, our priority is to continue to positively engage with regulators and the government to protect existing and future Aussie crypto users,” it added.
First launched in May, Swyftx’s Earn program allowed users to earn daily interest on certain crypto tokens by loaning them to Swyftx.
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The Australian Securities & Investments Commission has been actively eyeing down Australian crypto product providers in recent months.
In addition to the actions against Block Earner and Finder.com in November and December, it also took action against the creators of the Qoin token in October last year for “misleading” representations of its token.
The Australian federal government has also stepped up efforts to regulate the crypto sector.
In December, the Australian Labor Government announced it wouldrelease a consultation paper in early 2023 as part of its token mapping initiative.
Australian Treasurer Jim Chalmers said the consultation paper would cover how sure crypto belongings must be regulated alongside frameworks for firm licensing, asset custody and shopper protections.
UpdateDec. 9, 6:22am UTC: Added a press release from Swyftx.
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