TechFlow news — On August 23, according to The Block, Bit Trade Pty Ltd, Kraken's Australian operator, lost its legal case against the Australian Securities and Investments Commission (ASIC). The court ruled that Bit Trade violated Section 994B of the Corporations Act by failing to conduct a "target market determination" prior to launching margin products.
Kraken stated that the ruling highlights regulatory uncertainty in Australia’s crypto sector, particularly given the court's finding that margin trading offered in fiat currency is subject to design and distribution obligations, while offerings in cryptocurrency are not.
ASIC Deputy Chair Sarah Court emphasized that this is a significant decision concerning a major global crypto firm, aimed at ensuring industry compliance with regulatory obligations. ASIC will work with Bit Trade within seven days to agree on statements and injunctions, and intends to seek financial penalties against Kraken’s operator.
