Binance Australia Subsidiary Fined AUD 10 Million for Misclassifying Users

Foresight News reports, according to The Wall Street Journal, the Federal Court of Australia has ruled that Binance's local derivatives division must pay an additional AUD 10 million (approximately USD 6.9 million) in civil penalties. This fine is in addition to the AUD 13.1 million compensation Binance paid to affected customers in 2023. The Australian Securities and Investments Commission (ASIC) stated that between July 2022 and April 2023, the division misclassified 524 retail investors as wholesale clients, exposing them to high-risk derivatives without consumer protections, resulting in losses and costs exceeding AUD 12 million. ASIC Chair Joe Longo remarked that this outcome serves as a clear warning to financial service providers seeking to operate in Australia. A Binance spokesperson noted that the issue was rectified in 2023, and the subsidiary Oztures has ceased its derivatives business and surrendered its license.