Australia Securities and Investments Commission Charges BinanceAU for Neglecting Consumer Protection Duties
Summary
- The Australia Securities and Investments Commission announced that it has initiated legal proceedings against Binance.
- Binance reported that due to customer classification errors, over 500 retail investors were not provided with legal protection.
- It emphasized that this led customers to trade virtual asset derivatives without proper support.
The Australia Securities and Investments Commission (ASIC) announced on the 19th that it is initiating legal proceedings against Binance Australia Derivatives.
According to a report by Decrypto on the 19th (local time), the Australia Securities and Investments Commission stated in a press release, "Binance made an error by classifying over 500 retail customers as wholesale investors from July 2022 to April 2023, resulting in these investors not receiving legal protection under Australian financial law."
Under Australian law, retail customers are entitled to consumer protections such as a Product Disclosure Statement (PDS), Target Market Determination (TMD), and an internal dispute resolution system. However, ASIC emphasized that Binance failed to provide these safeguards, allowing customers to trade speculative and complex virtual asset derivatives without adequate support.
YM Lee
20min@bloomingbit.ioCrypto Chatterbox_ tlg@Bloomingbit_YMLEE
