Australian regulator sues Binance for exposing customers to risky trading
The Australian Securities and Investments Commission (ASIC) has taken legal action against Binance Australia over alleged breaches of consumer protection laws. ASIC's lawsuit centers on Binance’s failure to adequately protect retail investors, particularly between July 2022 and April 2023. During this period, over 500 Australian clients were misclassified as wholesale clients, which deprived them of vital consumer protections under Australian law. This misclassification meant they were exposed to high-risk, speculative crypto derivative products without the necessary safeguards in place. ASIC claims that Binance's compliance systems were "woefully inadequate," resulting in significant financial losses for many of these investors. The regulator highlighted that Binance failed to provide crucial documents like Product Disclosure Statements (PDS) and Target Market Determinations (TMD), which are required under Australian regulations. Additionally, ASIC alleges that Bina...