Australian crypto exchange Swyftx is ending its crypto-interest earning product Earn on Tuesday due to a “constantly changing regulatory landscape” in the country, according to a company announcement.
See related article: Australian crypto exchange Swyftx cuts 40% of jobs amid fallout from FTX collapse
Fast facts
- Swyftx said it understands the news may be “disappointing” but it must do what’s best for its overall exchange business. “While we believe in the value and potential of cryptocurrency, what we currently need is greater clarity on the regulation of crypto offerings such as Earn,” Swyftx said.
- The remaining balances on all Earn accounts will be returned to their respective wallets once the program ends.
- Yield accounts such as Earn generate returns through staking assets held on Swyftx wallets on-chain and therefore do not carry third-party risks.
- The Australian Securities and Investments Commission (ASIC) sued local fintech firm Block Earner in November, alleging the company’s yield-earning crypto products should have been registered as a managed investment scheme and that it was offering unlicensed financial products to retail investors.
- ASIC also took legal action against Australian financial information company Finder.com in mid-December, alleging it was offering its now-defunct crypto yield product Finder Earn without a financial services license and was offering illegal financial advice.
- The Australian government has said it will release updated rules for regulating cryptocurrency exchanges this year in the wake of the multi-billion dollar collapse of Bahamas-based exchange FTX.com
See related article: Australia to revamp cryptocurrency rules after FTX collapse