Kraken is calling for clearer cryptocurrency regulations in Australia after the Federal Court ruled that part of its margin rollover product violated local laws.
Cryptocurrency exchange Kraken is arguing for clearer crypto regulations in Australia after the Federal Court ruled that its margin trading product violates local laws.
On September 8 Blog statementKraken expressed disappointment with the ruling, saying that Australian crypto investors and businesses “continue to operate in a confusing and uncertain regulatory environment.” The exchange also stressed that the ruling highlights broader regulatory shortcomings in the country’s approach to cryptocurrencies.
“This lack of clarity creates a deeply unsatisfactory ongoing situation for the Australian crypto industry. (…) This ruling makes it clearer than ever that there is an urgent need for dedicated crypto regulation.”
Kraken
In September 2023, the Australian Securities and Investments Commission commenced civil proceedings against Bit Trade, a subsidiary of US Payward Incorporated, for failing to identify the target market for its product before offering it to customers.
In late August, the Australian Federal Court ruled against Bit Trade for failing to comply with legal obligations when offering a margin trading product. ASIC Deputy Chair Sarah Court said the ruling was intended to set a precedent for crypto compliance enforcement in Australia.
Following the ruling, Kraken’s margin trading in fiat currencies is now restricted to wholesale clients in Australia, while margin trading in cryptocurrencies remains unaffected, the exchange said. While the exchange acknowledged Australia’s progress toward creating a “regulatory framework for cryptocurrencies,” it warned that legislation could be “delayed until after the end of the year.”