Australia Sues Kraken Provider Over Crypto Margin Trading


The financial regulatory bodies of Australia filed a lawsuit against the supplier of the exchange of cryptocurrencies associated with the well -known Kraken platform, claiming that the supplier contributed to the trade of the illegal margin. Margin trading allows users to use their investments, but also carries significant risks. In this case, the growing regulatory check of the cryptocurrency industry and the need for clear rules to protect investors are emphasized. In this article, we will delve into the details of the claim and its potential consequences for the crypto industry.


The Australian Securities and Investment Commission filed a lawsuit against the company related to Kraken, accusing him of allowing Australian users to participate in margin trade without the necessary licenses. Margin trade includes borrowing funds to strengthen the size of the user position in the cryptocurrency trade. Although this can lead to significant profits, he also exposes significant losses.

ASIC claims that the supplier, who offered derivatives of cryptocurrencies and margin trade services, violated the financial rules of Australia without receiving the necessary licenses. These licenses are necessary to ensure user protection, and trading practice is carried out in a transparent and fair way.

ASIC’s fears:

Investors’ protection: one of the main problems of ASIC is the protection of investors. The agency claims that the unregulated margin trade can lead to significant losses for inexperienced traders who may not fully understand the risks associated with this. Without appropriate rules, investors may not have access to important disclosure of information about risks and guarantees.

The integrity of the market: ASIC is also concerned about the influence of the unregulated margin trade on the integrity of the market. An excessive lever can lead to extreme price volatility and manipulation with the market, which can harm a wider crypto -market and its participants.

Compliance with regulatory requirements: The claim emphasizes the importance of exchanging cryptocurrencies and service providers that comply with regulatory requirements. ASIC claims that the supplier could not comply with the financial norms of Australia, emphasizing the need for clear and consistent rules in the crypto space.

Kraken’s answer:

Kraken, a well -known exchange of cryptocurrencies, distance from the trial. The exchange clarified that he is not a party to the court and that he does not offer the marginal services of trade in Australian users. Kraken is known for its commitment to comply with regulatory requirements and received licenses in various jurisdictions to work legally.

Nevertheless, the fact that the company related to Kraken is faced with legal claims raises questions about the potential influence of Kraken’s reputation and a wider cryptocurrency industry.

The consequences for the crypto industry:

Increasing control control: a trial against a supplier associated with Kraken is part of a wider trend in increasing regulatory control in the cryptocurrency industry. Regulators around the world are working on the creation of clear leading principles for crypto -foreign and service providers to protect investors and maintain the integrity of the market.

The importance of conformity: the case emphasizes the importance of compliance with local financial norms. Cryptocurrency companies should show the initiative in the understanding and adhere to the regulatory landscape of jurisdictions in which they act in order to avoid legal problems.

Reputation and trust: for the established exchanges of cryptocurrencies, such as Kraken, maintaining a strong reputation is crucial. Any connection with legal disputes or normative violations can destroy trust among users and investors.

User education:

The lawsuits emphasize the need to teach users in relation to risks associated with the trade of margin and other advanced trade strategies. Users should know about the potential of significant losses and take appropriate precautions.


The lawsuit against the Kraken supplier in Australia emphasizes the growing regulatory attention on the cryptocurrency industry. He emphasizes the need for clear rules to protect investors and maintain the integrity of the market. Cryptocurrency exchange and service providers must prioritize in accordance with local rules in order to avoid legal problems and protect their reputation. As the crypto -industry continues to develop, it encounters a growing analysis of regulators who seek to find a balance between innovations and the protection of investors.

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