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Kraken is calling for clearer crypto regulations in Australia after a Federal Court ruled that part of its margin extension product violated local laws.
Cryptocurrency exchange <a href="https://crypto.news/tag/kraken/" target="_blank" rel="noopener noreferrer nofollow">Kraken</a> is advocating for clearer crypto regulations in <a href="https://crypto.news/tag/australia/" target="_blank" rel="noopener noreferrer nofollow">Australia</a> after a Federal Court ruled that its fiat margin trading product violated local laws.
In a Sept. 8 <a href="https://blog.kraken.com/news/important-context-behind-asics-recent-judgment-and-why-australia-should-prioritise-implementing-a-clear-crypto-regulatory-framework" target="_blank" rel="noopener noreferrer nofollow">blog statement</a>, Kraken expressed disappointment with the judgment, saying Australian crypto investors and businesses “continue to operate in a confusing and uncertain regulatory environment.” The exchange also emphasized that the ruling highlights broader regulatory shortcomings in the country’s approach to crypto.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “This lack of clarity is a deeply unsatisfactory ongoing situation for the Australian crypto industry. […] This ruling makes it clearer than ever that bespoke crypto regulation is urgently needed.”
 Kraken
</blockquote>
In September 2023, the Australian Securities and Investments Commission 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.
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/australias-asic-takes-down-over-600-crypto-scam-websites-in-yearlong-operation/"> Australia’s ASIC takes down over 600 crypto scam websites in yearlong operation </a>
In late August, Australia’s Federal Court <a href="https://crypto.news/australias-regulator-wins-case-against-krakens-local-operator/" target="_blank" rel="noopener noreferrer nofollow">ruled</a> 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.
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. While the exchange acknowledged Australia’s progress towards establishing a “regulatory framework for crypto,” it still cautioned that the legislation might be “delayed beyond the end of the year.”
Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/kraken-expanding-institutional-crypto-services-to-the-uk-and-australia/"> Kraken expanding institutional crypto services to the UK and Australia </a>

Kraken criticizes Australia’s ‘uncertain’ crypto rules after court ruling

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