Australian Markets Regulator is Reviewing Binance Australia’s Derivatives Services

The Australian Securities and Investments Commission (ASIC) is conducting a targeted examination of Binance Australia’s derivatives business, said the regulator on Friday.

This development follows a Binance statement that 500 Australian users were incorrectly classified as “wholesale investor” by Binance. Their derivative positions were then unceremoniously shut down. Local regulations prohibit retail traders from trading financial derivatives or futures.

Binance stated that it had already reached out to all affected users and would compensate them fully.

A spokesperson for ASIC said that the Australian markets regulator has reviewed the entity’s “classifications of wholesale clients and retail clients”.

“ASIC was made aware by Binance’s overnight social media posts stating that it incorrectly classified a group Australian consumers as wholesale investors. These matters have not been reported to ASIC by Binance in accordance with its Australian Financial Services Licence obligations.

CoinDesk reached out to Binance for comment but they did not respond immediately.

Continue reading: 500 Australian Users Will Receive Compensation from Binance for Any Losses in Closed Derivative Positions

By David Warsh

David Warsh is a leading expert in the field of cryptocurrency and blockchain technology. With over a decade of experience in the industry, he has a deep understanding of the intricacies of digital currencies and the potential they hold for revolutionizing various industries.