Gains

<div class="insidebitcoins"> 
 <p>The Australian Securities and Investment Commission (ASIC) is suing crypto exchange Kraken’s provider, Bit Trade, over a margin trading product</p> 
 <p>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.&nbsp;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> 
 <p>The regulator alleges that 1,160 Bit Trade customers lost A$12.95 million ($8.3 million) using the product.</p> 
 <p>“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> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
  <p lang="en" dir="ltr">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 pic.twitter.com/zURQ2xDw7M</p> 
  <p>— ASIC Media (@asicmedia) September 20, 2023</p> 
 </blockquote> 
 <p></p> 
 <h2 id="kraken-surprised-by-asic-s-move">Kraken Surprised By ASIC’s Move</h2> 
 <p>Kraken says it was taken by surprise by the regulator’s move, according to a CoinTelegraph report.</p> 
 <p>“We have been attempting to constructively engage with ASIC on this matter for some time to ensure our product offering, as an AUSTRAC-registered Digital Currency Exchange, remains compliant,” said managing director Jonathon Miller.</p> 
 <p>The number of Bit Trade customers that used the controversial product exceeded 1,160 individuals in Australia, the CoinTelegraph story said, adding that ASIC had&nbsp; notified Bit Trade of its failure to comply with the local obligations in June 2022.</p> 
 <h3 id="related-articles">Related Articles:</h3> 
 <ul> 
  <li>Kraken Applauds Canadian Strict But Collaborative Regulatory Approach</li> 
  <li>Kraken NFT Marketplace Gains Traction Days After Official Launch – Here’s What You Need to Know</li> 
  <li>Crypto exchange Kraken receives VASP authorization in Ireland</li> 
 </ul> 
 <p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/kraken-s-australia-provider-sued-over-margin-trading-product-tbt63570.html">https://thebittimes.com/kraken-s-australia-provider-sued-over-margin-trading-product-tbt63570.html</a></p> 
</div>

Kraken’s Australia Provider Sued Over Margin Trading Product

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