Because there is uncertainty regarding how cryptocurrency products will be regulated, the Australian cryptocurrency exchange Swyftx has announced that it will end its well-known Earn program. Since its debut last year, the program, which allowed users to earn interest on their cryptocurrency holdings, has proven popular with users.
Swyftx stated that it had decided to end the program due to the “uncertain regulatory environment” surrounding cryptocurrency products in a statement posted on the company website. Before continuing to offer such products to its customers, the company claimed that the legal status of such products needed to be “absolutely clear.”
Investors looking to monetize their cryptocurrency holdings through passive income have found Swyftx’s Earn programme to be very appealing. By keeping Bitcoin, Ethereum, and other well-known digital assets in their Swyftx accounts, users were able to earn interest on those holdings. Many of the program’s users, who had grown accustomed to the passive income it produced, were disappointed by the company’s decision to end the programme. Swyftx has promised its customers that it will fully refund any unpaid balances and that it will work with regulators to try and make the legal status of cryptocurrency products with more clarity.
Swyftx Fears The Regulations Now?
Swyftx’s Earn programme may or may not generate profits in the future, but for the time being, it appears that the exchange was compelled to discontinue it due to the hazy regulatory landscape surrounding cryptocurrency products. Additionally, the Australian federal government has increased its efforts to control the cryptocurrency industry.
The Australian Labor Party government declared in December that as part of its token mapping initiative, a consultation paper would be published in the first half of 2023.
The consultation paper, according to Australian Treasurer Jim Chalmers, will cover how specific crypto assets should be regulated along with frameworks for business licencing, asset custody, and consumer protections.
