The Australian Securities and Investments Commission (ASIC) has sued the Binance Australia Derivatives platform, accusing it of violating consumer rights and margin trading requirements. According to ASIC's complaint filed in the Federal Court, from July 7, 2022, to April 21, 2023, the largest cryptocurrency exchange, Binance, offered cryptocurrency derivatives trading to 505 Australian retail investors. They were mistakenly classified as wholesale clients, and this incorrect segmentation of the target audience affected 83% of Australian Binance users. These retail clients trading cryptocurrency derivatives will not be able to rely on legal protection. Binance was supposed to properly identify the target market, and failing to comply with this requirement violates local laws, ASIC explained. The agency added that Binance's Australian subsidiary did not have an internal dispute resolution system that met regulatory requirements. The exchange did not comply with the terms of its license, and the platform's staff were not sufficiently competent. According to ASIC Deputy Chair Sarah Court, Binance failed to provide assurances that the services offered by the exchange under the Australian license were provided fairly. 'Binance exposed over 500 clients to high financial risk by offering them speculative products without adequate protective measures. Many of these clients suffered significant financial losses. Cryptocurrency derivative products are very risky and complex, so it is extremely important to correctly classify retail clients,' Court stated. Recently, for the same reason, the Australian regulator fined Bit Trade, the operator of the American cryptocurrency exchange Kraken, $5 million. The agency insists that Kraken violated margin trading requirements.#BinanceSqaure