PANews reported on December 18 that the Australian Securities and Investments Commission (ASIC) has filed a lawsuit against cryptocurrency company Binance Australia Derivatives, accusing it of failing to adequately protect consumer rights from July 2022 to April 2023. ASIC stated that Binance misclassified 505 Australian retail investors (83% of its total clients) as wholesale clients, resulting in these retail investors not receiving the consumer protections they were entitled to, including key rights like product disclosure statements and target market determinations.
ASIC Vice Chair Sarah Court stated that Binance's compliance system is severely inadequate, exposing retail investors to high-risk cryptocurrency derivatives, many of whom have suffered significant financial losses. In 2023, ASIC oversaw Binance paying approximately $13.1 million in compensation to affected customers. ASIC indicated it would seek penalties, declarations, and adverse publicity orders, and will continue to protect consumers and maintain market integrity through various regulatory and enforcement tools.