Australia Hits Kraken’s Crypto Exchange Operator With $5.1M Fine For Unlawful Credit
Kraken’s Australian operator, Bit Trade, has been issued a fine of A$8 million (US$5.1 million).
On Thursday, the Australian Securities and Investments Commission (ASIC) announced that the Federal Court had ordered Bit Trade to pay the penalty for unlawfully issuing a credit facility through the company’s margin trading product to over 1,100 customers without adequate compliance measures.
Bit Trade allegedly failed to adhere to regulatory requirements in assessing the suitability of its margin trading product for its customers, leading to customer losses exceeding $5 million.
ASIC revealed that Bit Trade’s margin extension product allowed customers to borrow funds, repayable in either crypto or fiat, but failed to ensure that…
