⚡ Australian Regulator Wins Case Against Kraken
posted 23 Aug 2024
The Australian Securities and Investments Commission (ASIC) won a legal battle against Bit Trade Pty, the local operator of the Kraken exchange. The court found that the company violated regulations by offering margin trading services to Australian clients without the necessary registration since 2021.
Effectively, Kraken operated as a credit facility, while the law mandates that all companies must predefine a “target market” for each product they offer. Despite the unfavorable verdict, a Kraken representative highlighted that the judge pointed out the difficulties of applying current regulations to crypto trading.
Overall, we’re disappointed by today’s ruling, but we’re prepared and willing to comply with the court’s decisionstated the exchange.
The regulator emphasized that the parties now have a week to agree on declarations and injunctions, and the ruling serves as a warning to all crypto companies that might be violating local laws. Additionally, officials are seeking to impose a financial penalty on Kraken.
