Swyftx Will Discontinue Its “Earn” Program This Week Due to Unclear Restrictions

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Last Updated on January 9, 2023 by Bitfinsider

Due to a “constantly changing regulatory landscape” for cryptocurrency goods in the nation, Australian crypto exchange Swyftx is planning to discontinue its crypto-interest product this week.

The “Earn” program will no longer be run by the cryptocurrency exchange starting on January 10. Users will receive a full refund of their Earn balances in their trade wallets.
Although users may find the choice “disappointing”, Swyftx insisted that it is “committed to doing what is best for the program in the near term”.

Due to the holidays, Swyftx issued the announcement on December 27; nonetheless, it received little attention at the time.

The news comes just after Australian regulators took legal action against Block Earner, a fintech company, and the crypto yield products offered by Finder.com for allegedly being sold without the necessary licensing.

Though the exchange stated it would consider reopening the program once the rules are more clear, Swyftx has not firmly shut the door on Earn.

In a statement, Swyftx stated that the “uncertainty of the current regulatory context” was the reason it was shutting its Earn offering.

“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,” the statement continued.

Swyftx’s Earn program, which was first introduced in May, allowed users to borrow various crypto tokens from Swyftx in exchange for daily income.

Australian crypto product suppliers have recently come under the scrutiny of the Australian Securities & Investments Commission.

It took action against the creators of the Qoin token in October of last year for making “misleading” claims about its token, in addition to the proceedings it took against Block Earner and Finder.com in November and December. Furthermore, the Australian federal government has increased its efforts to control the cryptocurrency industry.

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