Australian Regulator Takes Legal Action Against Binance

According to regulators in Australia, retail customers of Binance were not covered by the same consumer protections as other risky derivatives investors, which resulted in significant losses.

In a lawsuit filed on Wednesday, the Australian Securities and Investments Commission stated that from July 2022 to April 2023, Binance incorrectly categorized more than 500 customers on its Australian derivatives exchange as “wholesale clients.”

This meant that these customers were not entitled to the same protections as smaller investors, such as receiving disclosure statements and access to dispute resolution systems.

Among the products offered on Binance’s Australian derivatives exchange are futures in Bitcoin and Ether. As a result of this misclassification, the crypto exchange paid out $8.29 million to affected retail customers, including losses and fees, as outlined in the lawsuit.