Australian Securities & Investments Commission Reviewing Binance
- Australian Securities and Investments Commission is investigating Binance Australia’s derivatives business.
- 500 Australian users affected by Binance’s misclassification error will be compensated.
- Binance did not report incidents to ASIC under license obligations.
The Australian Securities and Investments Commission (ASIC) announced on Friday that it is investigating Binance Australia’s derivatives business more closely. Following Binance’s admission that 500 of its Australian customers had been incorrectly classified as “wholesale investors,” their derivative holdings were terminated.
Moreover, Retail traders are not allowed to trade financial derivatives or futures due to local regulations.
Historically, Binance Australia has only allowed “wholesale” traders to trade futures and financial derivatives on their platform in compliance with local laws. However, Binance announced on Thursday that it wrongly labeled 500 Australian customers as “wholesale investors,” which led to the cancellation of their derivative contracts.
However, the leading crypto exchange in the world tweeted that 500 Au…
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