According to Techub News, the Australian Securities and Investments Commission announced that the Australian Financial Services Regulator has sued Binance Australia Derivatives, accusing it of misclassifying more than 500 retail customers and refusing to provide legal protection. The lawsuit outlines several regulatory violations, including Binance's failure to issue a PDS or TMD, inadequate dispute resolution mechanisms, and lack of employee training to ensure compliance with its financial services license. ASIC also accused Binance of failing to provide services "efficiently, honestly and fairly."
The Australian Securities and Investments Commission said in the document that retail customers are entitled to stronger consumer protections, including product disclosure statements (PDS), target market determinations (TMD) and internal dispute resolution procedures. Australian Securities and Investments Commission Deputy Chairman Sarah Court criticized Binance’s compliance system, calling it "seriously inadequate," and said many customers suffered significant financial losses due to inadequate protection measures.