Australia Securities Regulator Sues Binance Over Alleged Consumer Safeguard Failures
"Crypto derivative products are inherently risky and complex, so it is critical that retail clients are classified correctly,” an ASIC official said.
Vismaya V
By Vismaya V
Dec 19, 2024
3 min read
Image: Shutterstock
Image: Shutterstock

The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings against Binance Australia Derivatives, accusing the platform of misclassifying retail investors and denying them essential consumer protections.

Between July 2022 and April 2023, Binance classified over 500 retail clients—83% of its Australian customer base—as wholesale investors, according to the agency’s statement.

The error stripped these investors of crucial legal protections under Australian financial laws and exposed them to high-risk financial products, the regulator said Wednesday.