Australian Federal Court rules on Kraken operator in Australia BitTradeIt found that Bit Trade failed to comply with its legal obligations. Bit Trade was found guilty of failing to comply with the requirement to specify a target market in the margin trading product offered to its customers. The decision indicates that regulatory pressures will increase in the cryptocurrency sector.
Shocking Decision from the Federal Court of Australia
The crypto world is not calming down. The Federal Court of Australia is ruling out the country’s financial regulator ASIC’s case against Kraken’s Australian operator Bit Trade Pty Ltd. Bit Trade was found guilty of failing to comply with legal obligations regarding its margin trading product. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
The decision stated that the target market determination requirement was not complied with. Kraken’s margin expansion product offered to its customers in Australia has been on the market since October 5, 2021. However, this product was offered for sale without the TMD document, which is the target market determination requirement. According to section 994B(2) of the Australian Corporations Act, it is necessary to determine in advance who is suitable for financial products.
Consumer Protection Prioritized
The stated legal obligation aims to ensure that financial products are targeted to the right customer base. This aims to prevent potential financial losses. ASIC stated that Bit Trade did not comply with these requirements and argued that the company was in breach of the law.
The decision certainly has a meaning. Accordingly, the court’s decision is seen as an important victory for ASIC. ASIC Deputy Chair Sarah Court said, “Our regulatory pressure on the cryptocurrency sector will continue. We will continue to monitor the compliance of products with legal obligations to protect consumers.”
Bit Trade’s Future Is Uncertain
Bit Trade and ASIC will agree on statements and measures to be taken within seven days of the court decision. ASIC plans to seek financial penalties in the future. Operating in Australia Kraken He stated that he was disappointed by this decision but stated that he would abide by the court’s decision.
The cryptocurrency world is increasingly struggling with legal regulations. Current legal frameworks that have difficulty adapting to innovative technologies continue to make the future of the sector uncertain. As can be seen from recent developments, it has become clear once again how necessary it is for cryptocurrencies to be regulated globally.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
