PANews reported on December 18 that according to an announcement by the Australian Securities and Investments Commission (ASIC), ASIC has sued the cryptocurrency company Binance Australia Derivatives, accusing it of failing to properly protect consumer rights between July 2022 and April 2023. ASIC stated that Binance misclassified 505 Australian retail investors (accounting for 83% of its total customers) as wholesale customers, resulting in these retail investors failing to obtain the consumer protection they deserve, including key rights such as product disclosure statements and target market identification.
ASIC Deputy Chairman Sarah Court stated that Binance's compliance system was seriously inadequate, exposing retail investors to high-risk cryptocurrency derivatives, many of whom suffered significant financial losses. In 2023, ASIC supervised Binance to pay approximately $13.1 million in compensation to affected customers. ASIC stated that it would seek penalties, declarations and adverse public publicity orders, and continue to protect consumers and maintain market integrity through various regulatory and law enforcement tools.
