Binance Fined $10 Million for Misclassifying Client Base

Binance Australia Derivatives has faced significant regulatory scrutiny after a court ruling found that it misclassified over 85% of its client base as wholesale investors.

The Australian Federal Court ordered Oztures Trading Pty Ltd, which operated Binance Australia Derivatives, to pay A$10 million in penalties for failing to properly classify clients and provide adequate consumer protections. The company admitted to serious failures in client onboarding and staff training, which led to retail clients being given access to high-risk crypto derivatives.

Binance had already paid A$13.1 million in compensation to affected users before the court imposed the new penalty. The incident is the latest in a series of regulatory challenges faced by Binance in Australia and other markets in the region.