Binance’s Australian derivatives arm has been ordered to pay a A$10 million civil penalty after Australia’s Federal Court found widespread failures in how it classified clients for crypto derivatives trading. The Australian Securities and Investments Commission (ASIC) said Oztures Trading Pty Ltd, which operated Binance Australia Derivatives, misclassified more than 85% of its Australian users over a nine-month period (July 2022–April 2023). ASIC found 524 retail investors were wrongly treated as wholesale (professional) clients and therefore given access to high‑risk crypto derivatives without the consumer protections retail investors should have had. Those clients later recorded A$8.66 million in trading losses and paid A$3.89 million in fees. Key facts - Regulator: ASIC; Court: Australia’s Federal Court (Justice Moshinsky issued orders). - Company: Oztures Trading Pty Ltd (operated Binance Australia Derivatives). - Period: July 2022–April 2023. - Misclassification: >85% of Australian client base; 524 retail investors treated as wholesale. - Financial impact on clients: A$8.66M losses; A$3.89M in fees. - Penalties: A$10M civil penalty plus a contribution to ASIC’s legal costs; this is in addition to about A$13.1M Binance Australia already paid in compensation in 2023 under ASIC oversight. Regulatory findings ASIC said Binance admitted “serious failures” in client onboarding and staff training. The regulator highlighted weak controls that allowed users to retake a multiple‑choice quiz repeatedly until they reached a passing score and qualify as “sophisticated” investors. Senior compliance staff also failed to properly verify applications and supporting documents—ASIC cited an instance in which Binance accepted a client as a professional investor after the person described themselves as an “exempt public authority” without adequate verification. Reaction ASIC Chair Joe Longo said, “Binance failed to set up basic compliance checks and incorrectly approved hundreds of applications for complex, wholesale investor products.” Binance responded that the issue was self‑identified, reported to ASIC, and fully remediated in 2023. Regional pressure The ruling comes as Binance faces additional scrutiny across the Asia‑Pacific region. In the Philippines, local reports said the main Binance app was removed from the Philippine Google Play Store and the exchange’s website was blocked for many users, following regulatory action against unlicensed offshore platforms. Searches for Binance on the Play Store reportedly redirected users to local or region‑specific alternatives instead of the global app. What this means The Federal Court decision underscores growing regulatory pressure on major crypto platforms to maintain robust onboarding, verification and compliance systems—particularly where access to complex derivatives and investor protections are concerned. Read more AI-generated news on: undefined/news