Bit Trade, the Kraken subsidiary operating in Australia, sued by the ASIC
Bit Trade allegedly neglected to establish a target market determination before offering its margin trading product to Australian clients. Bit Trade first received notification of its non-compliance with these obligations in June 2022. Bit Trade’s margin trading product has been used by at least 1160 Australian customers. The Australia n Securities and Investments Commission (ASIC) has initiated legal proceedings against Bit Trade, the operator of the Kraken cryptocurrency exchange in Australia . The action stems from Bit Trade’s failure to adhere to design and distribution requirements for one of its trading products. As per ASIC’s statement released on September 21st, the financial regulator in Australia alleges that Bit Trade neglected to establish a target market determination before offering its margin trading product to Australian clients. These design and distribution obligations represent a legal mandate for financial product provid...