The Australian Federal Court has fined Bit Trade, the operator of the Kraken exchange, $8 million for offering an unapproved margin lending product. 🚫

- ASIC accused Bit Trade of breaching financial regulations by failing to assess the suitability of customers for the product.

- The product allowed users to invest in digital assets such as Bitcoin without a TMD, a document that ensures the product is suitable for consumer needs.

- Between 2021 and 2023, 1,163 customers paid more than $12 million in fees and interest, with total losses of $7.85 million.

ASIC Chairman Joe Longo stressed the importance of TMDs in protecting consumers. 🛡️ Kraken calls for clearer regulations to reduce uncertainty in the industry.