Australian Court Rules Against Crypto Exchange Kraken

Crypto exchange Kraken has stated that the lack of regulatory clarity in Australia was the primary reason for a recent court ruling against its local operator in a lawsuit filed by the country’s securities regulator.

On Friday, the federal court in Australia ruled that Bit Trade Pty Ltd, Kraken’s local operator, had violated Section 994B of the Corporations Act by not making a “target market determination” before offering its financial product to customers.

The Australian Securities and Investments Commission (ASIC), which brought the case against Bit Trade, stated that the exchange’s margin extension product had been available to customers on Kraken since October 5, 2021 without a target market determination.

Kraken stated that it will comply with the court’s ruling on its margin offering. However, the exchange also highlighted that the judgment serves as an example of the unclear regulations surrounding cryptocurrencies in Australia.