ASIC sues Binance Australia over investor misclassification and protections
The Australian Securities and Investment Commission (ASIC) has sued Oztures Trading Ltd, operator of Binance Australia Derivatives, for inadequate customer protection practices. ASIC claims over 500 retail investors were misclassified as wholesale clients, denying them essential consumer safeguards. Between July 2022 and April 2023, Binance allegedly offered crypto derivative products to 505 retail investors, misclassifying 83% of its local client base. This misclassification bypassed mandatory protections under Australian financial laws, including access to disclosure statements and dispute resolution mechanisms. ASIC accused Binance of failing to issue a product disclosure statement, not determining a target market, and lacking an adequate internal complaint resolution system. ASIC seeks penalties and adverse publicity orders. This lawsuit follows ASIC's recent legal victory against Bit Trade, which was fined $5 million for regulatory breaches.
