Catenaa, Friday 13, 2024-The Australian Federal Court has imposed a penalty of 8 million Australian dollars ($5.1 million) on Bit Trade, the operator of Kraken’s crypto exchange in Australia, for failing to meet regulatory requirements.
The court’s ruling follows accusations by the Australian Securities and Investments Commission (ASIC) that Bit Trade issued a credit facility without proper licensing.
Between October 2021 and August 2023, Bit Trade allegedly offered a margin trading product to over 1,100 customers without conducting a target market determination, resulting in losses exceeding $5.2 million.
ASIC had initially sought a penalty of 20 million Australian dollars, while Bit Trade argued for a cap of 4 million. Kraken expressed disappointment with the decision, calling for clearer crypto-specific legislation to address regulatory ambiguities.
“We appreciate the Court recognized our compliance efforts but are disappointed with the outcome,” a Kraken spokesperson said.
ASIC Deputy Chair Sarah Court emphasized the regulator’s commitment to monitoring crypto products to safeguard investors.
The court has also ordered Bit Trade to cover ASIC’s legal costs and pay the fine within 60 days.
