Binance is Sued by Australian Regulator

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ASIC has taken legal action against Binance Australia Derivatives, a crypto derivatives trading platform, for failing to comply with consumer protection laws.

According to the regulator, over 500 retail clients were wrongly classified as wholesale investors between July 2022 and April 2023, resulting in them losing important legal protections.

Retail clients are entitled to various consumer protections, including access to a Product Disclosure Statement (PDS), a Target Market Determination (TMD), and internal dispute resolution processes.

ASIC Deputy Chair Sarah Court criticized Binance for having inadequate compliance systems, which led to significant financial losses for clients.

The lawsuit outlines multiple regulatory breaches, including the failure to issue a PDS and TMD, insufficient dispute resolution mechanisms, and a lack of employee training for compliance with their financial services license.