Kraken’s Australian subsidiary has been ordered to pay a $5 million fine after losing a lawsuit brought by the Australian Securities and Investments Commission (ASIC). Announced on Nov. 21, the court found that Kraken Australia failed to meet regulatory requirements related to anti-money laundering (AML) and corporate compliance. The ruling underscores the growing scrutiny faced by crypto platforms in the region.
ASIC alleged that Kraken Australia had inadequate systems to monitor and report suspicious transactions, a key requirement for licensed financial entities operating in the country. The regulator claimed that these shortcomings posed significant risks to the financial system and undermined efforts to combat financial crime. Kraken Australia has stated it is reviewing the ruling and considering its options, including a potential appeal.
The fine comes amid a broader crackdown on cryptocurrency exchanges by Australian regulators, who have ramped up enforcement actions to ensure compliance with local laws. Several other exchanges are also under investigation for similar violations. Kraken Australia has pledged to strengthen its compliance framework to address the issues raised in the case and maintain its commitment to operating responsibly in the country.
This case highlights the increasing pressure on crypto platforms to align with traditional financial standards as regulators worldwide tighten their oversight of digital assets. While Kraken remains a leading player in the global crypto market, the fine serves as a reminder of the importance of robust compliance measures to navigate the evolving regulatory landscape.
