- Court Ruling and Kraken's Response
- ASIC Actions and Implications
- Future of Crypto Regulations in Australia
Cryptocurrency exchange Kraken is advocating for clearer crypto regulations in Australia after a Federal Court ruled that part of its margin extension product violated local laws.
Court Ruling and Kraken's Response
In a September 8 blog statement, Kraken expressed disappointment with the judgment, stating that Australian crypto investors and businesses “continue to operate in a confusing and uncertain regulatory environment.” The exchange emphasized that the ruling highlights broader regulatory shortcomings in the country’s approach to crypto.
ASIC Actions and Implications
In September 2023, the Australian Securities and Investments Commission (ASIC) launched civil proceedings against Bit Trade, a subsidiary of U.S. Payward Incorporated, for failing to conduct a target market determination for its product before offering it to customers. In late August, Australia’s Federal Court ruled against Bit Trade for failing to comply with legal obligations when offering a margin trading product. ASIC’s Deputy Chair Sarah Court stated that the ruling aims to set a precedent for enforcing crypto compliance in Australia.
Future of Crypto Regulations in Australia
Following the ruling, Kraken’s margin trading in fiat is now restricted to wholesale clients in Australia, while crypto margin trading remains unaffected, the exchange noted. Kraken acknowledged Australia’s progress toward establishing a 'regulatory framework for crypto,' but still cautioned that the legislation might be 'delayed beyond the end of the year.'
In light of recent events, it is crucial for Australian regulators to establish clear and predictable norms for the cryptocurrency industry to ensure market safety and stability.
Comments