Australian Court Rules Against Kraken's Local Operator for Margin Product Violations

Federal ruling highlights regulatory compliance issues in cryptocurrency financial products

Bit Trade Pty Ltd, Kraken's Australian operator, failed to meet target market determination requirements.
The court classified Kraken's margin extension product as a credit facility when repaid in national currency.
ASIC initiated proceedings to ensure compliance and protect consumers from financial harm.
Kraken expressed disappointment but committed to complying with the court's decision.
The ruling underscores challenges in applying existing laws to innovative crypto technologies.