Australia has the third-highest rate of crypto adoption in the world with an influx of products such as Bitcoin ATMs. However, crypto exchanges and operators are concerned about the Australian regulators’ laws.
No More Fiat Margin Trading: Kraken Traders Lose Access to Service
Kraken Australia was recently embroiled in a Federal lawsuit due to their Margin Extension product. The Court ruled in favour of the Australia Securities and Investments Commission (ASIC) and ordered Kraken to halt their fiat margin trading offer to the Aussies, except for “Wholesale investors.”
“…the Court’s decision was a win for those of us that are advocating for new laws to govern crypto…the judgement highlighted, and clearly affirmed, that existing Australian law is not effective at regulating crypto,” Kraken said.
Kraken Sees Current Legislation “Deeply Unsatisfactory”
Kraken has expressed dissatisfaction with the current regulatory landscape, calling it “deeply unsatisfactory.” While they are committed to reintroducing fiat margin trading on their platform in the coming months, they are also ensuring compliance with existing regulations. At present, the fiat Margin Extension service is only available to high-net-worth individuals, professional investors, or large corporations.
Kraken’s reaction to a recent court ruling highlights the precarious position many crypto businesses face in Australia. The crypto industry continues to grapple with a confusing and uncertain regulatory framework, with ongoing ambiguity affecting both investors and businesses.
While the Australian Government plans to address crypto regulation in a draft Bill, there are concerns that its final approval may not come until 2025.
