Kraken calls for clearer crypto regulations in Australia. The call follows a Federal Court ruling that some of Kraken’s products violate local laws. Following this decision, Kraken highlighted the uncertainty of crypto regulations in Australia and highlighted the urgent need for regulation for the crypto industry.

In a blog statement made on September 8, 2024, Kraken expressed disappointment with the decision made by the Federal Court of Australia. The court ruled that Kraken’s fiat margin trading product was not compliant with Australia’s existing regulations.

Kraken stated that this decision creates a confusing and uncertain regulatory environment for crypto investors and businesses in Australia. The company emphasized that this uncertainty represents a persistent challenge for the Australian crypto industry and demonstrates the urgent need for dedicated crypto regulations.

“This situation makes the need for special crypto regulations clearer than ever,” Kraken said in its statement.

In September 2023, the Australian Securities and Investments Commission (ASIC) initiated legal proceedings against Bit Trade, a subsidiary of US-based Payward Incorporated. ASIC alleged that Bit Trade did not carry out the necessary target market determination before offering its product to customers.

In August, the Federal Court of Australia ruled against the company, stating that Bit Trade failed to comply with legal obligations in offering its margin trading product.

ASIC Deputy Chairman Sarah Court said the court’s decision aims to set a precedent for ensuring crypto compliance in Australia. Court noted that such decisions provide a reference point for how regulations should be applied in the crypto market.

Following the court’s decision, Kraken’s fiat margin trading activities became limited to wholesale customers in Australia. However, crypto margin trading was not affected by this decision.

While Kraken acknowledged that Australia is making progress towards creating a regulatory framework for crypto, he also expressed concern that these laws “may be delayed until later than the end of the year.”

Kraken’s call reflects a broader discussion that crypto regulations in Australia need to be clarified. The company argues that regulatory uncertainty is creating negative impacts on the crypto industry and that it is time for a clear, comprehensive regulatory framework to be established.

In this context, both local and international crypto investors and businesses expect regulatory uncertainties to be eliminated and a more stable environment in the crypto market to be achieved.

Kraken’s call once again reveals the need to develop regulatory approaches compatible with the growing and evolving nature of the crypto industry. Such regulations will play an important role in ensuring the safety of both investors and market players.