Leading crypto exchange Kraken has voiced concerns over the ambiguous regulatory landscape for digital assets in Australia. The company has called for implementing a clear crypto regulatory framework in Australia as a priority.
This critique comes in the wake of a court ruling that has highlighted the challenges faced by crypto businesses operating in the country, as Kraken was sued for breaking local laws through its margin trading products by the Australian Securities and Investments Commission (ASIC).
Moreover, the court ruling in question found an aspect of Kraken’s margin product violated part of the Corporations Act.
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Is The Australian Digital Asset Industry At Risk Of Missing Economic Opportunities?
On 8 September 2024, Kraken said that “the existing Australian law is not effective at regulating crypto” in a blog post.
While the specifics of the case were not disclosed, it has become a focal point for discussions about the need for clearer regulations. “This lack of clarity is a deeply unsatisfactory ongoing situation for the Australian crypto industry,” said Kraken. “Australian crypto investors and businesses continue to operate in a confusing and uncertain regulatory environment.”
Hence, the company urgently called fort a bespoke crypto regulation, pointing out that the Australian digital asset industry is at risk of missing the broader economic opportunity that crypto innovation brings.
“Globally, we’ve seen a race to provide tailored regulation for crypto assets,” said Kraken. “Clear and proportionate frameworks allow individuals to safely harness the potential of this transformative technology with appropriate regulatory protections.”
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KRAKEN CALLS FOR CLEARER CRYPTO RULES IN AUSTRALIA
Kraken’s frustrated with Australia’s murky crypto regulations after a court ruled their margin trading product broke local laws.
In a blog post, they pointed out the confusion this creates for investors and businesses.
The… pic.twitter.com/gMVoALtlNX
— IBC Group Official (@ibcgroupio) September 9, 2024
Kraken Recently Fined By Australian Authorities
However, this was not Kraken’s first run-in with the Australian authorities.
Two weeks ago, Kraken was fined by the Federal Court of Australia for failing to meet regulatory obligations for its margin trading product. The exchange was accused of offering its products without a required market determination. According to ASIC Deputy Chair, the decision “is a landmark outcome for ASIC concerning a big global crypto business.”
Kraken hit with dual legal, regulatory setbacks in US and Australia https://t.co/Rfao08Hftx pic.twitter.com/Jses0YSHD3
— George Levy (@georgelevy) August 30, 2024
While Kraken calls for clarity in regulatory framework for crypto, the ASIC has been insisting on the need for compliance in the crypto industry.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
