Australian cryptocurrency exchange Swyftx has announced it will shut down its crypto-interest product, known as the “Earn” program, due to the constantly changing regulatory landscape for such services in the country.
The program will be discontinued on January 10, and users will receive a full refund of their Earn balances in their trade wallets.
Swyftx stated:
“Due to the constantly changing regulatory landscape, we have made the decision to close the Earn program on 10 January 2023. We understand that this news may be disappointing, but we are committed to doing what is best for the program in the near term.”
Swyftx claims they are dedicated to working with authorities and the government to develop a detailed and stable regulatory environment for cryptocurrencies in Australia. With these regulations in place, Swyftx aims to eventually re-open the Earn program.
Swyftx added:
“We are committed to working with regulators and the government to create a clear and stable regulatory environment for cryptocurrency in Australia, and we hope to be able to re-open the Earn program once these rules are established.”
The Earn program, launched in May 2022, allowed users to lend Swyftx various crypto tokens in exchange for daily interest.
The announcement comes a few weeks after Australian regulators (ASIC) took legal action against fintech company Block Earner and Finder.com’s cryptocurrency yield products for allegedly operating without the necessary license.
In the court document, ASIC claimed that Finder Wallet, a section of the price comparison website Finder.com, allowed users to deposit money into an account, convert it to a stablecoin, and pay guaranteed returns in order to effectively sell debentures without a financial services license.
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