Kraken has officially lost its court case with Aussie regulators ASIC, with the Federal Court finding the exchange violated the Corporations Act.Kraken Calls for Clear Crypto Rules in Australia After ASIC Ruling
This resulted in Kraken pulling its fiat Margin Extension service from the majority of its customer base.
Despite the blow to its product line, Kraken believed the ruling could be good news as it highlighted the need for regulatory reform in the crypto space.
Kraken believes current regulations in Australia stifle innovation and cause crypto companies to remain in the dark when operating Down Under.
Australia is one of the most active crypto nations in the world, boasting a high ownership percentage and an influx of products like Bitcoin ATMs. However, Government regulation Down Under is still a little murky for operators – at least according to the international exchange Kraken.
No More Fiat Margin Trading: Everyday Kraken Traders Lose Access to Service
Kraken, who has over a decade’s worth of history serving Aussie clients, was recently embroiled in a Federal lawsuit due to their Margin Extension product. The Court found in favour of Australia’s regulators ASIC, forcing Kraken to withdraw their fiat margin trading offer to Aussie citizens unless they are a “Wholesale Investor”.Kraken Calls for Clear Crypto Rules in Australia After ASIC Ruling
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Although Kraken was disappointed in the outcome – after being under the impression its product “fully complied with local laws” – there was one upshot from the ruling. The case proved that Australia is still lagging behind some other nations when it comes to regulatory clarity in the digital asset space.
Kraken Finds Current Legislation “Deeply Unsatisfactory”
Kraken has vowed to continue working on ways to re-integrate fiat margin trading onto its platform in the coming months, while ensuring it maintains regulatory compliance. For now though, only high-net-worth individuals, professional investors or large corporates can utilise the fiat Margin Extension service.
However, Kraken’s response to the Court’s ruling demonstrated the knife’s edge some crypto businesses live on when operating in Australia.
The current Australian Government has looked to address crypto regulations in an upcoming draft Bill, however, there are concerns its approval could be delayed until 2025.
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