The Australian Securities and Investments Commission (ASIC) has filed a civil lawsuit against Bit Trade, the service provider for cryptocurrency exchange Kraken in Australia, citing regulatory non-compliance and damages. for customers.
According to a September 21 announcement , ASIC accused Bit Trade of failing to comply with its design and distribution obligations for the leveraged trading product it offered to Australian customers, on the Kraken exchange.
Bit Trade did not identify the target market before providing services to Australian customers from 2020. Since the design and distribution obligation began to apply in October 2021, at least 1160 Australian customers have service usage and total damages of about 12.95 million USD.
ASIC emphasized that products will continue to be scrutinized by ASIC to protect user rights, while also sending a tough message to the cryptocurrency industry about its regulatory compliance obligations.