• The Federal Court of Australia has ruled against Bit Trade, the operator of the Kraken cryptocurrency exchange in the country, for failing to comply with legal requirements when offering a margin trading product. The court found that Bit Trade violated regulatory obligations by providing the margin extension product without conducting a target market determination, as mandated by the Corporations Act, which aims to protect consumers by ensuring financial products are suitable for their intended user group.
• The court determined that while the obligation to repay a crypto asset under the margin extension product does not constitute a deferred debt, repayment in national currencies does, categorizing the product as a credit facility and thus subject to specific regulatory requirements.
• ASIC, the Australian Securities and Investments Commission, is seeking financial penalties against Bit Trade and has given both parties seven days to agree on declarations and injunctions. Kraken acknowledged the ruling, emphasizing the novelty of crypto assets and the evolving regulatory landscape.
Source: https://crypto.news/australias-regulator-wins-case-against-krakens-local-operator/ Show Less
