Justice Nicholas determined that "By issuing the Product to retail clients without having first made a target market determination for the Product, Bit Trade contravened s 994B(1) of the Corporations Act when read with s 994B(2)."
Since 5 October 2021, Bit Trade's "margin extension" product has been available to customers trading on the Kraken exchange without a target market determination, as required by law.
Overall, we're disappointed by today's ruling, but we're prepared and willing to comply with the court's decision," a Kraken spokesperson said. "We're pleased the judge understood the nuances in this case, and recognised the challenges in applying existing regulatory frameworks to innovative technologies."
ASIC said that the Judge found the obligation to repay a digital asset was not an obligation to repay money and was therefore not a deferred debt but agreed that a margin extension in a national currency created a deferred debt which meant that the product was a credit facility.
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