Kraken, a prominent cryptocurrency exchange, has been fined $5.1 million by Australia's financial watchdog, the Australian Securities & Investments Commission (ASIC), for unlawfully offering margin trading to retail customers through its Australian operator, Bit Trade. The Federal Court of Australia found that Bit Trade did not adequately screen over 1,100 retail customers before providing them access to high-risk margin trading products, resulting in collective losses exceeding $5 million. ASIC Chair Joe Longo emphasized the importance of target market determinations in preventing investors from being inappropriately marketed harmful products. The fine marks ASIC's first penalty under the design and distribution rules implemented since October 2021, highlighting the growing regulatory scrutiny on crypto exchanges in Australia.