**News Flash: Australian Court Rules Against Kraken's Bit Trade**

Australia's federal court has sided with the financial regulator ASIC in a case against Bit Trade, the operator of Kraken's crypto exchange in Australia. The court found Bit Trade violated design and distribution obligations and operated as a credit facility without a license.

- **Background**: ASIC sued Bit Trade in September 2023, claiming its margin trading product lacked a target market determination.

- **Court Ruling**: Justice John Nicholas ruled Bit Trade issued products without meeting legal requirements, effectively operating as a credit facility.

- **Reactions**: ASIC plans to seek financial penalties. Kraken expressed disappointment but is ready to comply with the ruling.

This case underscores the importance of regulatory compliance in Australia's crypto industry.