{"id":144642,"date":"2024-12-12T20:30:37","date_gmt":"2024-12-12T18:30:37","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=144642"},"modified":"2024-12-12T15:20:50","modified_gmt":"2024-12-12T13:20:50","slug":"kraken-hit-with-5-1m-fine-in-australia-over-margin-trading-violations","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/kraken-hit-with-5-1m-fine-in-australia-over-margin-trading-violations\/","title":{"rendered":"Kraken Hit with $5.1M Fine in Australia Over Margin Trading Violations"},"content":{"rendered":"

The Australian Securities and Investments Commission (ASIC) took action<\/a><\/strong> against Bit Trade for offering margin trading products to over 1,100 customers without verifying if the products were suitable for their financial needs. This is part of a broader trend of governments intensifying oversight on the crypto industry.<\/p>\n

Bit Trade\u2019s margin trading product allowed users to trade with borrowed funds, but the company didn\u2019t conduct necessary assessments to ensure it was a fit for customers. As a result, customers faced heavy losses, including one investor who lost almost $4 million. ASIC had initially sought a $12.8 million fine, but the court reduced the penalty to $5.1 million. Bit Trade\u2019s attempt to reduce the fine to $2.5 million was denied.<\/p>\n

The court ruled that Bit Trade\u2019s product was effectively a credit facility, which required specific regulations, such as a \u201ctarget market determination\u201d document, which the company failed to provide. This fine is the first of its kind in Australia for such an oversight.<\/p>\n