here are legal issues that have affected Kraken, a cryptocurrency exchange, in both the United States and Australia, and these issues may affect operations and future developments.
US SEC Lawsuit Proceeds
Kraken’s request to deny the SEC’s lawsuit was unfortunately denied by a US federal judge. Kraken was accused of conducting an unregistered securities exchange. The presiding judge, William H. Orrick dismissed the case but his decision hinted on the fact that the SEC’s allegations were reasonable, which means that the case will have to continue further.
Australian Regulatory Defeat
Moreover, Kraken exchange faced legal issues in Australia where it was involved in a case that was brought by the Australian Securities and Investments Commission (ASIC) where the company was defeated as well. The Australian Federal Court stated that Bit Trade Pty Ltd, which is doing business under the Kraken brand in Australia, violated the rules of ASIC regarding margin trading products.
Implications and Future Outlook
These legal complications come at a very crucial time for Kraken, as the company is working towards its $100 million funding round before a possible IPO in 2025. The results of these cases may affect its operations and compliance with laws and regulations in some of the major jurisdictions in which it operates.
Kraken's Legal Hurdles
These legal issues of Kraken are not uncommon in the crypto industry and they are an example of the global legal problems that exchanges of cryptocurrencies continue to encounter. Like other exchanges, Kraken has to face legal challenges within the crypto industry’s development while seeking expansion and development.
