ASIC Sues Binance Australia Over Consumer Protection Failures

BE[IN]CRYPTO12-19

ASIC accuses Binance Australia of misclassifying 500+ clients as wholesale investors. The lawsuit claims clients were denied essential consumer protection rights. Binance faces mounting global legal ...

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Binance reportedly denied them critical protections under Australian financial laws.According to ASIC, retail clients are entitled to greater safeguards, including a Product Disclosure Statement , a Target Market Determination , and access to internal dispute resolution mechanisms.“ASIC will continue to use the full range of regulatory and enforcement tools to safeguard consumers and uphold market integrity in the digital asset sector,” said Sarah Court. In the UK","collect":0,"end_time":0,"defaultTopTitle":"beincrypto.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4141":"半导体产品","LU1854104046.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) ACC","LU0124384867.USD":"贝莱德新能源基金A2","BK4588":"碎股","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","BK4512":"苹果概念","LU1548497426.USD":"安联环球人工智能AT Acc","LU2360107325.USD":"BGF FUTURE OF TRANSPORT \"A4\" (USD) INC","ON":"安森美半导体","BK4092":"石油与天然气钻井","PDS":"Precision Drilling Corp","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU1978683503.SGD":"Blackrock Sustainable Energy A2 SGD-H","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU1854103824.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) INC","LU2298322129.HKD":"BGF SUSTAINABLE ENERGY \"A2\" (HKDHDG) ACC","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","BK4585":"ETF&股票定投概念","LU0724618433.USD":"BGF NEW ENERGY \"A4\" (USD) INC","LU1861215975.USD":"贝莱德新一代科技基金 A2","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","LU1861219969.SGD":"Blackrock Future of Transport A2 SGD-H","LU1861214812.USD":"Blackrock Future of Transport A2 USD"},"translate_title":"ASIC因消费者保护失败起诉币安澳大利亚","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PDS":1,"ON":1},"content_text":"ASIC accuses Binance Australia of misclassifying 500+ clients as wholesale investors.\nThe lawsuit claims clients were denied essential consumer protection rights. \nBinance faces mounting global legal challenges, including tax disputes in India. \n\nThe Australian Securities and Investments Commission (ASIC) has filed a lawsuit against Binance Australia Derivatives, accusing the platform of failing to protect consumers. \nThe regulator claims Binance misclassified over 500 retail clients as wholesale investors between July 2022 and April 2023. Binance reportedly denied them critical protections under Australian financial laws.\nAnother Binance Lawsuit Due to Regulatory Incompliance\nAccording to ASIC, retail clients are entitled to greater safeguards, including a Product Disclosure Statement (PDS), a Target Market Determination (TMD), and access to internal dispute resolution mechanisms. \nDeputy Chair Sarah Court criticized Binance’s compliance practices, calling them “woefully inadequate.” She stated that many clients suffered significant financial losses due to the lack of proper protections.\n\n“ASIC will continue to use the full range of regulatory and enforcement tools to safeguard consumers and uphold market integrity in the digital asset sector,” said Sarah Court \n\nThe lawsuit alleges several violations, including Binance’s failure to issue mandatory PDS and TMD documents, insufficient dispute resolution systems, and inadequate employee training for regulatory compliance. \nAlso, the regulator also Binance of failing to conduct its business “efficiently, honestly, and fairly.” It will now seek penalties, declarations and adverse publicity orders with this lawsuit. \nIn April 2023, following a review of its operations, Binance’s Australian financial services license was canceled. ASIC stated the cancellation came after Binance requested it. \n\n“There are some misinformation (and confusion) about #Binance Australia. We requested to cancel the derivatives license yesterday. The platform had exactly 104 users as of yesterday. Binance_AUS will continue to operate the spot exchange in AU,” former Binance CEO CZ wrote back in 2023. \n\nThis legal action highlights ASIC’s increased focus on regulating the crypto industry. Recently, the regulator fined Kraken’s Australian operator $12.8 million for compliance breaches. \nAnother Australian agency, AUSTRAC, has also stepped up its scrutiny of crypto ATMs. The agency will require operators to perform strict KYC checks, monitor transactions, and report cash withdrawals exceeding $10,000.\nGlobally, Binance continues to face mounting legal challenges. The Indian government has reportedly accused the platform of owing $85 million in unpaid taxes. \nIn the UK, a former Binance employee has filed a whistleblower lawsuit, alleging a colleague solicited a bribe from a customer for preferential treatment. The whistleblower also claims wrongful termination after reporting the misconduct.\nOverall, the lawsuit against Binance Australia reflects growing regulatory pressure on crypto platforms as governments intensify efforts to enforce compliance with financial laws.\n\n\n\n\n🎄Best crypto platforms in Europe | December 2024\n\n\n\neToro\nExplore\n                      \n\n\n\n\n\nWirex\nExplore\n                      \n\n\n\n\n\nYouHodler\nExplore\n                      \n\n\n\n\n\nPhemex\nExplore\n                      \n\n\n\n\n\nMargex\nExplore\n                      \n\n\n\n\n\n\n\n\n🎄Best crypto platforms in Europe | December 2024\n\n\neToro\n\n\n\n\n\n\n\n\nWirex\n\n\n\n\n\n\n\n\nYouHodler\n\n\n\n\n\n\n\n\nPhemex\n\n\n\n\n\n\n\n\nMargex","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"policyRegulatory","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492413215"}