Australia’s Federal Court has fined Kraken’s local operator, Bit Trade, A$8 million ($5.1 million) for unlawfully issuing a credit facility to over 1,100 customers. The Australian Securities and Investments Commission (ASIC) stated that Bit Trade failed to assess the suitability of customers for a margin trading product, leading to losses exceeding $5 million. The product, which allowed margin extensions in digital assets or currencies, was deemed a credit facility by the Federal Court in August, requiring a target market determination. ASIC Chair Joe Longo stressed the importance of such determinations to protect investors.
Read the original article here: https://www.reuters.com/business/finance/australia-orders-51-mln-fine-kraken-crypto-exchange-operator-2024-12-12/