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What will be the outcome of Kraken's appeal against the $5.1M fine by ASIC?
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Resolution / Starting Odds
Fine upheld • 25%
Fine reduced • 25%
Fine overturned • 25%
Settlement reached • 25%
Court rulings or official announcements from the Federal Court of Australia
Story
Kraken's Australian Operator Bit Trade Fined $5.1M for Unlawful Margin Trading
Dec 12, 2024, 11:19 AM
Kraken, a prominent cryptocurrency exchange, has been fined $5.1 million by Australia's financial watchdog, the Australian Securities & Investments Commission (ASIC), for unlawfully offering margin trading to retail customers through its Australian operator, Bit Trade. The Federal Court of Australia found that Bit Trade did not adequately screen over 1,100 retail customers before providing them access to high-risk margin trading products, resulting in collective losses exceeding $5 million. ASIC Chair Joe Longo emphasized the importance of target market determinations in preventing investors from being inappropriately marketed harmful products. The fine marks ASIC's first penalty under the design and distribution rules implemented since October 2021, highlighting the growing regulatory scrutiny on crypto exchanges in Australia.
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Fines imposed • 25%
Operational restrictions • 25%
License revoked • 25%
No actions taken • 25%
Yes • 50%
No • 50%
Kraken wins • 25%
SEC wins • 25%
Settlement reached • 25%
Other outcome • 25%
Kraken wins the lawsuit • 25%
Kraken loses the lawsuit • 25%
Kraken settles the lawsuit • 25%
Lawsuit ongoing • 25%
Appeal the decision • 25%
Comply with the ruling • 25%
Modify the margin trading product • 25%
Withdraw the margin trading product • 25%
Product withdrawal • 25%
Product modification • 25%
Legal appeal • 25%
Other • 25%
New regulations introduced • 25%
Existing regulations clarified • 25%
No change in regulations • 25%
Other • 25%
Introduce new regulations • 25%
Issue further penalties • 25%
Conduct more investigations • 25%
No further action • 25%