Australia fined cryptocurrency exchange operator Kraken $5.1 million

Australia's Federal Court has ordered local cryptocurrency exchange operator Kraken to pay a fine of A$8 million (US$5.1 million), according to Australia's corporate watchdog Reuters.

The Australian Securities and Investments Commission (ASIC) last year brought civil proceedings against Bit Trade, which operates the Kraken exchange in Australia, for failing to comply with the rules for yourMargin Trading Product.

ASIC stated that Bit Trade failed to identify the right customers for a new margin trading product, resulting in losses of more than $5 million.

"Bit Trade released its product and made it available to over 1,100 Australians who were charged over $7 million in fees and interest without first checking whether the product was suitable for them," the statement said.ASIC.

Product Bit Trade enables enhanced margin, a form of credit or loan that can be issued and repaid in either digital assets such as Bitcoin or national currencies such as US dollars.

The regulator, however, said the fine was the first of its kind against an organization that had not defined its target market.