The Australian Securities and Investments Commission (ASIC) has successfully prosecuted Bit Trade Pty Ltd, the operator of the Kraken cryptocurrency exchange in Australia, resulting in an $8 million fine. Bit Trade unlawfully issued a margin extension product to over 1,100 Australian customers without meeting regulatory obligations. The company, a subsidiary of Payward Incorporated, is registered with AUSTRAC and operates Kraken’s Australian exchange. In addition to the fine, Bit Trade will cover ASIC’s legal costs. The Federal Court determined that Bit Trade’s product constituted a credit facility under Australian law. The absence of a target market determination (TMD) breached regulatory responsibilities. ASIC Chair Joe Longo emphasized the importance of TMDs in protecting investors. The case highlights ASIC's increased scrutiny of the digital asset sector and the need for responsible product design and distribution. Kraken's plans to shut down its NFT marketplace and launch its Layer-2 blockchain 'Ink' in 2025 are also mentioned. Read more AI-generated news on: https://app.chaingpt.org/news