Australia's federal court has ruled in favor of the Australian Securities and Investments Commission (ASIC) against Bit Trade, the operator of Kraken's crypto exchange in Australia. The court found that Bit Trade violated design and distribution obligations and operated as a credit facility without a license. ASIC's lawsuit, filed in September 2023, argued that Bit Trade's margin trading product lacked proper customer targeting and constituted an unauthorized credit service. Kraken, which acquired Bit Trade in 2020, expressed disappointment with the ruling but confirmed its readiness to comply with the court's decision.