Australian regulator sues Binance Australia Derivatives for failing to protect consumer rights

PANews reported on December 18 that according to the Australian Securities and Investments Commission (ASIC) announcement, ASIC has sued the cryptocurrency company Binance Australia Derivatives, accusing it of failing to properly protect consumer rights between July 2022 and April 2023. ASIC said Binance misclassified 505 Australian retail investors (83% of its total customers) as wholesale customers, resulting in these retail investors failing to receive due consumer protections, including key rights such as product disclosure statements and target market identification. .

ASIC deputy chair Sarah Court said Binance’s compliance system was woefully inadequate, exposing retail investors to high-risk cryptocurrency derivatives, many of whom suffered significant financial losses. In 2023, ASIC oversaw Binance paying approximately $13.1 million in compensation to affected customers. ASIC said it will seek penalties, declarations and adverse publicity orders, and will continue to protect consumers and maintain market integrity through a variety of regulatory and enforcement tools.