The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against Binance Australia Derivatives, a cryptocurrency derivatives trading platform, accusing the company of failing to meet consumer protection standards. In a statement released on December 18, ASIC alleged that Binance misclassified over 500 retail clients as wholesale investors between July 2022 and April 2023, stripping them of legal protections they would have otherwise received under Australian financial laws.
The regulator stated that retail clients are entitled to stronger consumer protections, such as access to a Product Disclosure Statement (PDS), a Target Market Determination (TMD), and internal dispute resolution processes. ASIC Deputy Chair Sarah Court criticized Binance’s compliance systems, describing them as “woefully inadequate,” and said that many clients suffered significant financial losses due to the lack of proper protections.
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