Australia's Federal Court has fined Kraken's Australian operator, Bit Trade, 8 million AUD ($5.1 million) for breaching market rules. The court ruled that Bit Trade failed to comply with design and distribution obligations and acted as a credit facility without a license. This penalty follows a suit by the Australian Securities and Investments Commission (ASIC), which initially sought a 20 million AUD fine. ASIC criticized Kraken for offering a "margin extension" product without proper market determinations, impacting over 1,100 Australians. This case underscores the need for clearer crypto regulations in Australia.