- Earn allows users to earn interest on their funds held on their Swyftx wallets.
- The exchange might have suggested that the move might be temporary.
Swiyftx announced the move in December
Australian cryptocurrency exchange will close its Earn program on January 10th. In an announcement on December 27th, 2022, the exchange explained that ‘Due to the constantly changing regulatory landscape,’ they were closing the interest bearing product.
Earn was launched in May; users earn interest on funds held in their Swyftx accounts on a daily basis.
The exchange clarified that move was not a decision made for financial reasons. It added that the customer funds held at Earn were safe. On January 10th, customers’ funds in the program will be transferred to their trade wallets. Users, will continue to earn on their funds till January 10th and can withdraw any time.
Swyftx added that they realize the move may disappoint, but was required for ensuring the best for the program ‘in the near term.’ This might suggest that the closure is not permanent.
“…what we currently need is greater clarity on the regulation of crypto offerings such as Earn.”
“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.”
News of the move broke recently after a media agency revealed the announcement made on the exchange’s website. It is likely that the announcement went unnoticed amid the holiday season and all the heat around the FTX case.
Authorities are scrutinizing Crypto
The federal government and the Securities and Investment Commission of Australia are stepping up regulatory oversight. Recently, the Securities and Investment Commission took actions against Block Earner, another crypto financing firm and Finder.com.
In December, as a part of its token mapping initiative, the government had announced plans to release a consultation paper early on in 2023.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.