Bilal Hüseynov 
ASIC Files Lawsuit Against Kraken Provider Bit Trade! The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings against Bit Trade, the provider of the Kraken cryptocurrency exchange in Australia, alleging a failure to comply with design and distribution obligations. This highlights the cryptocurrency industry’s increasing scrutiny regarding adherence to local regulations.
According to ASIC, Bit Trade failed to make a target market determination before offering its margin trading product to Australian customers, a violation of design and distribution obligations that came into effect in October 2021. Since the introduction of these obligations, at least 1,160 Australian customers have used Bit Trade’s margin trading product, resulting in approximately $8.35 million in losses.
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Jonathan Miller, Managing Director of Kraken’s Australian operations, expressed surprise at ASIC’s actions and believed the product to be compliant. Bit Trade describes its margin trading product as a “margin extension” service, allowing customers to receive credit up to five times the value of their collateral.
ASIC Files Lawsuit Against Kraken!
ASIC’s lawsuit against Bit Trade serves as evidence of increased regulatory scrutiny within the cryptocurrency industry to ensure compliance with local consumer protection laws. As legal proceedings unfold, the crypto community will closely monitor the case’s outcomes and implications. As a result, ASIC Files Lawsuit Against Kraken Provider Bit Trade!