CoinSpot, one of Australia’s premier centralized cryptocurrency exchanges, has announced the temporary suspension of its “earn” program starting September 1st, 2023. This decision, driven by the evolving regulatory landscape in Australia, has sent shockwaves through the local crypto community, leaving many to question what the future holds for crypto earning in the country.
The CoinSpot Earn Program was highly sought after, offering customers the opportunity to stake 23 tokens, including big names like Ethereum, Cardano, Solana, and Avalanche. With some of the highest staking yields in Australia and a unique tiered system, users could earn higher yields the more tokens they staked.
Coinbase remains the only platform with an earn program for Sol and Eth in Australia currently, though there’s uncertainty about how long this will continue. Meanwhile, Binance stopped its staking program for Australian customers many months ago, though earning Eth is still possible if converted to beth.
In a bid to maintain compliance with Australian regulators and governing bodies, CoinSpot has made the hard choice to halt the Earn feature, actively engaging with regulatory bodies to gain deeper clarity. The move has sparked intense debate among users on Reddit, with reactions ranging from criticism of government interference to support for the decision in light of compliance needs.
The immediate impact on stakers is a concern, especially considering CoinSpot’s earn program never had unlock periods. As of September 1st, anything in the earn program will automatically be ‘unstaked.’ Many users are already looking to decentralized apps like ShapeShift and Ledger to stake their eth come September, anticipating the suspension of CoinSpot’s earning program.
Community responses are varied and passionate. Bucksaway03 sharply criticizes the government’s overreach, while others like Harold838383 see the move as beneficial for crypto, encouraging more people to take custody of their assets. Amidst concerns about the lack of positive news about crypto in Australia and cryptic comments like “Aka money is running out” from RealVoldemort, the community is left grappling with a complex situation.
Some users have expressed understanding towards CoinSpot’s decision, recognizing that compliance with local regulation is good business. Giddyup281, for example, prefers exchanges to be compliant, understanding the necessity of this move.
CoinSpot’s suspension of its Earn Program has indeed set off a frenzy of opinions and concerns in the Australian crypto community. While some see this as an overreach by the government, others recognize the need for exchanges to adhere to regulations. The temporary nature of the suspension leaves room for hope, but the uncertainty in the regulatory landscape leaves many questioning the future of crypto in Australia. The shifting landscape, marked by Coinbase’s continued program and Binance’s earlier suspension, hints at a complex and unpredictable road ahead. Only time will tell if this is a temporary pause or a sign of more significant changes to come in the world of cryptocurrencies down under.
