The Australian Securities & Investments Commission (ASIC) reported that the Federal Court ordered Oztures Trading Pty Ltd, trading as Binance Australia Derivatives, to pay an AUD 10 million pecuniary penalty and contribute to ASIC’s costs for misclassifying more than 85% of its Australian client base as wholesale investors. The misclassification between July 2022 and April 2023 exposed 524 retail investors to high-risk crypto derivative products without required consumer protections, resulting in AUD 8.66 million in trading losses and AUD 3.89 million in fees. In a Statement of Agreed Facts, Binance admitted serious failures in client onboarding, staff training and compliance oversight, including allowing clients unlimited attempts at a multiple-choice “sophisticated investor” quiz and accepting inadequate or unverified evidence for wholesale status. Of the 524 misclassified clients, 460 were incorrectly classified under the Sophisticated Investor Test, with others misclassified under individual wealth, professional investor, related body corporate and large business tests. Binance admitted multiple contraventions, including failing to provide Product Disclosure Statements to retail clients, make a Target Market Determination, maintain a compliant internal dispute resolution system, comply with Australian Financial Services licence conditions, ensure services were provided efficiently, honestly and fairly, and adequately train and ensure employee competency. ASIC noted the penalty is in addition to approximately AUD 13.1 million in compensation paid to affected clients under ASIC oversight in 2023, and follows civil proceedings ASIC commenced in December 2024.

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