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Australian Markets Regulator is Reviewing Binance Australia’s Derivatives Services

According to a statement made by the regulator on Friday, the Australian Securities and Investments Commission (ASIC) is currently conducting a targeted review of the derivatives business operated by Binance Australia.

This news comes a day after cryptocurrency exchange Binance admitted that it had mistakenly labeled 500 Australian users as “wholesale investors,” which led to their derivative positions being abruptly closed. Retail traders are prohibited from engaging in futures and financial derivatives trading by regional regulations.

Binance stated that it had already contacted all of the users who were affected and that it would compensate them in full. According to a spokesperson for the Australian Securities and Investments Commission (ASIC), the review being conducted by the Australian markets regulator includes the entity’s “classification of retail clients and wholesale clients.”

“A group of Australian consumers were incorrectly categorized as wholesale investors, according to social media posts published overnight by Binance. These posts have been brought to the attention of ASIC. It is in violation of the obligations imposed upon it by its Australian Financial Services Licence because it has not yet reported these matters to ASIC.”

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