Connect with us

Hi, what are you looking for?

Australian regulator claims win over Kraken’s Bit Trade in federal court
Australian regulator claims win over Kraken’s Bit Trade in federal court

Finance

The Australian Court says Kraken’s Bit Trade did not follow the rules and should be punished

Kraken’s bitcoin exchange is run by a local company called Bit Trade. An Australian court found Bit Trade guilty of not following the rules for creation and marketing and running as an illegal credit facility. Bit Trade started its margin trading product without properly targeting the market, according to the Australian Securities and Investments Commission (ASIC). It also gave out credit without a license. The court’s decision shows how important it is for the crypto business to follow the rules set by the government.

An important ruling was made against Bit Trade, which is the Australian branch of Kraken’s bitcoin market. The court said Bit Trade didn’t do important things like design and marketing, and it also looked like an illegal credit facility.

The Australian Securities and Investments Commission (ASIC) sued Bit Trade in September 2023. ASIC said Bit Trade started its credit trade product without following the law in Australia about who the product is meant for. The court agreed that Bit Trade broke the rules by not making this basic choice before putting the goods on the market.

Australia’s job is to make sure that financial products are made and sold in a way that meets the wants of certain groups of users. It was also said by ASIC that Bit Trade’s product, which let users trade with up to five times the value of their protection, was an illegal way to lend money. The court agreed because the product gave buyers a “deferred debt,” which is what the law calls a credit facility.

The judge will give ASIC and Bit Trade one week to talk about the terms of the orders and comments. Bit Trade has been warned by ASIC that it will be sued for the breaches.

The Australian crypto business has been given a sharp warning about how important it is to follow the rules and make sure goods are sent out properly by this decision. The business said it is ready to do what the court says, even though it doesn’t like it.

author avatar
Alex
Formally freelance blogger Alex is passionate writer with interest in Finance and Business, fascinated about crypto following news and covering stories.
Advertisement

You May Also Like

Cryptocurrency

Experts predict that the launch of the RLUSD stablecoin, a US dollar-backed token, will boost XRP demand in 2025. With transactions settling on the...

Cryptocurrency

Ripple's CTO, David Schwartz, has warned against early FOMO (Fear of Missing Out) ahead of the RLUSD stablecoin debut, forecasting short-term price volatility due...

Cryptocurrency

Ripple will debut its new dollar-backed stablecoin, RLUSD, on December 17, with initial listings on major platforms including Uphold, MoonPay, and CoinMENA. The stablecoin...

Finance

Lido Finance has discontinued its staking services on the Polygon network, citing limited user acceptance and shifting market circumstances. Users may withdraw their staked...

polkadot
Polkadot (DOT) $ 6.98 0.06%
bitcoin
Bitcoin (BTC) $ 95,976.71 1.48%
ethereum
Ethereum (ETH) $ 3,320.44 1.31%
cardano
Cardano (ADA) $ 0.894794 0.98%
xrp
XRP (XRP) $ 2.25 0.13%
stellar
Stellar (XLM) $ 0.36179 1.35%
litecoin
Litecoin (LTC) $ 101.38 0.62%