Binance Australia Entity Fined for Misclassifying Retail Clients

The Australian court has imposed a A$10 million ($6.9 million) penalty on Binance Australia Derivatives over onboarding failures that led to millions of dollars in client losses and fees.

The Federal Court found that Oztures Trading Pty Ltd, which operated the platform, misclassified more than 85% of its Australian customer base as wholesale clients between July 2022 and April 2023. The designation allowed hundreds of retail investors to access high-risk crypto derivatives without the safeguards required under Australian law, according to the court.

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Binance admitted the failures exposed ...