Australian regulator sues Kraken provider over non-compliance
ASIC accuses Bit Trade, Kraken’s Australian arm, of not specifying a target market before offering its margin trading product. The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings against Bit Trade Pty Ltd, the provider of Kraken Crypto Exchange. According to a Sept. 21 statement, the regulator alleges that the company’s non- compliance with Australian financial laws has resulted in approximately $12.95 million in losses for Australian consumers. We are suing Bit Trade, provider of the Kraken crypto exchange in Australia, for allegedly failing to comply with the design and distribution obligations (DDO) for its margin trading product. Since October 2021, customers have lost about $12.95 million https://t.co/MCRYqah0dP pic.twitter.com/zURQ2xDw7M — ASIC Media (@asicmedia) September 20, 2023 At the heart of the lawsuit is Bit Trade’s margin trading product, which ASIC claims did not meet the design and distribution ob...