The Australian Securities and Investment Commission (ASIC) is suing crypto exchange Kraken’s provider, Bit Trade, over a margin trading product<\/p>\n
Bit Trade failed to comply with the design and distribution obligations for the product it offers Australian customers on the Kraken exchange, ASIC said in a Sept. 21 statement.<\/a> It also failed to make a target market determination for the product before offering it to Australian customers, as required by law, it added.<\/p>\n The regulator alleges that 1,160 Bit Trade customers lost A$12.95 million ($8.3 million) using the product.<\/p>\n “These proceedings should send a message to the crypto industry that products will continue to be scrutinised by ASIC to ensure they comply with regulatory obligations in order to protect consumers,” said ASIC deputy chair Sarah Court. “ASIC’s action should be a reminder of the importance to comply with the design and distribution obligations so that financial products are distributed to consumers appropriately.”<\/p>\n We are suing Bit Trade, provider of the Kraken crypto exchange in Australia, for allegedly failing to comply with the design and distribution obligations (DDO) for its margin trading product. Since October 2021, customers have lost about $12.95 million https:\/\/t.co\/MCRYqah0dP<\/a> pic.twitter.com\/zURQ2xDw7M<\/a><\/p>\n — ASIC Media (@asicmedia) September 20, 2023<\/a><\/p><\/blockquote>\n\n