On Thursday evening, the Federal Court of Australia ruled that Bit Trade, Kraken's cryptocurrency exchange operator in Australia, had failed to comply with legal obligations regarding the design and distribution of margin trading products referred to in civil penalty proceedings initiated by the Australian Securities and Investments Commission (ASIC) in September. Bit Trade's "margin extension" product, which had been available to Kraken's Australian clients since 5 October 2021, was at the heart of the case. The court ruled that Bit Trade had breached the law by supplying the product without the requisite target market determination (TMD), as required by Australia's Companies Act.