ASIC’s Deputy Chair Emphasizes Regulatory Scrutiny

According to a Sept. 20 filing, the Australian Securities and Investments Commission has begun legal proceedings against Bit Trade Pty Ltd, the firm responsible for delivering the Kraken cryptocurrency exchange services to Australian clients.

ASIC Deputy Chair Sarah Court emphasized the importance of regulatory scrutiny in protecting consumers within the cryptocurrency sector. Court remarked, “These proceedings should send a message to the crypto industry that products will continue to be scrutinized by ASIC to ensure they comply with regulatory obligations in order to protect consumers.”

Bit Trade has offered its margin trading product to Australian customers via Kraken since January 2020. Despite ASIC’s concerns raised in June 2022, the company continues to provide the product without establishing a target market determination, which is essential for responsible distribution under the DDO.

In response to the allegations, ASIC is seeking declarations, monetary penalties, and injunctions to stop Bit Trade’s ongoing conduct. The date for the first case management hearing is yet to be scheduled by the Court.

#news #ASIC #Autralia

Sep-22-2023 08:04:42 AM