Kraken’s crypto provider Bit Trade sued in Australia

The Australian regulator alleges that certain Bit Tradethe supplier local exchange platform from Kraken cryptocurrenciesdo not respect the regulations in force.

This Thursday, theAustralian Securities and Investments Commission (ASIC) has announced that it is pursuing Bit Trade Pty Ltdan Australian platform acquired by Kraken in 2020, enabling it to serve people based in that country.

ASIC alleges that Bit Trade has failed to comply with its obligations to design and distribute the margin trading product it offers to Australian customers on the Kraken exchange. ASIC’s case focuses on Bit Trade’s failure to determine the product’s target market before offering it to Australian customers, as required by law,” reads its statement.

The Australian federal agency added that the product could be considered a ” credit facility “This was because it offered customers credit to be used for the sale and purchase of certain assets on Kraken. Offered since the takeover of Bit Trade, it has cost more than 1,000 users almost $13 million, according to the company.

This summer, ASIC also launched proceedings against the broker eToro for offering risky products “far too broadly”. It has also opened an investigation into the giant Binance.

These procedures should send a message to the crypto industry that products will continue to be reviewed by ASIC to ensure they comply with regulatory obligations to protect consumers,” hammered Sarah Court, ASIC’s vice president.

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