Comment on Kraken fined $5.1M in Australia for breaching crypto credit rules

Kraken fined $5.1M in Australia for breaching crypto credit rules

Australia’s corporate regulator announced on Thursday (Dec. 12) that the country’s federal court has ordered the local operator of cryptocurrency exchange Kraken to pay a fine of A$8 million ($5.1 million) for illegally offering a credit facility to over 1,100 customers. The Australian Securities and Investments Commission (ASIC) had filed civil proceedings against Bit Trade, the entity managing Kraken’s operations in Australia, accusing it of breaching regulations related to its margin trading product. Legal proceedings launched by ASIC have seen the Australian operator of the Kraken crypto exchange ordered to pay $8 million for unlawfully issuing a credit facility to more than 1,100 Australian customers https://t.co/YH8A4QRMTH pic.twitter.com/nB16fnTMmg — ASIC Media (@asicmedia) December 12, 2024 Why is Kraken crypto exchange being fined in Australia? In August, the country’s Federal Court determined that Bit Trade’s product qualified as a credit facility, requiring a target market determination (TMD) due to its provision of margin extensions in national currencies. Consequently, the company is said to have violated its design and distribution obligations (DDO) each time it offered the margin extension product to customers without the necessary TMD.

 

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