2024

Chair

April

<h4><strong>Australian regulators have sued Binance Australia Derivatives for failing to protect retail customers. </strong></h4> 
<p>Binance Australia Derivatives is an Australian arm of the Binance exchange that focuses on crypto derivatives.</p> 
<p>The Australian Securities and Investments Commission (ASIC) <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-283mr-asic-sues-crypto-company-binance-australia-derivatives-for-consumer-protection-failures/" target="_blank" rel="noopener">claims</a> that Binance Australia Derivatives misclassified over 500 retail investors as wholesale clients between July 2022 and April 2023.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">More than 500 retail clients of Oztures Trading Pty Ltd, trading as Binance Australia Derivatives, were denied important consumer protections after being misclassified as wholesale clients, ASIC alleges in documents filed in the Federal Court. <a href="https://t.co/nw2TxSRR6x">https://t.co/nw2TxSRR6x</a> <a href="https://t.co/Sm9nyBWjjE">pic.twitter.com/Sm9nyBWjjE</a></p> 
 <p>— ASIC Media (@asicmedia) <a href="https://twitter.com/asicmedia/status/1869199349600649339?ref_src=twsrc%5Etfw">December 18, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h5><strong>ASIC Claims Binance Failed to Protect Users</strong></h5> 
<p>Authorities claim the misclassification robbed retail users of the legal protection provided by local financial laws. ASIC Deputy Chair Sarah Court said Binance’s “inadequate systems” incurred significant losses to many retail clients.</p> 
<p>Courts said in a statement, “Crypto derivative products are inherently risky and complex, so retail clients must be classified correctly. Those classifications ensure they receive the required consumer protections”. Australian authorities have closely monitored Binance’s activities and revoked the exchange’s financial services license in April 2023 following a review of the platform’s operations.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">There are some misinformation (and confusion) about <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw">#Binance</a> Australia.<a href="https://twitter.com/Binance_AUS?ref_src=twsrc%5Etfw">@Binance_AUS</a> requested to cancel the derivatives license yesterday. The platform had exactly 104 users as of yesterday.<a href="https://twitter.com/Binance_AUS?ref_src=twsrc%5Etfw">@Binance_AUS</a> will CONTINUE to operate the spot exchange in AU. <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f64f.png" alt="🙏" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/nEExtG4U90">pic.twitter.com/nEExtG4U90</a></p> 
 <p>— CZ <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f536.png" alt="🔶" class="wp-smiley" style="height: 1em; max-height: 1em;"> BNB (@cz_binance) <a href="https://twitter.com/cz_binance/status/1643980400853921796?ref_src=twsrc%5Etfw">April 6, 2023</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br> ASIC accused Binance of violating several regulatory provisions, including poor systems to ensure compliance with financial laws and a lack of dispute resolution systems. The financial regulator also faulted Binance for failing to deliver its services “honestly and fairly.”</p> 
<p>ASIC oversaw the distribution of A$13.1 million ($8.29 million) in compensation to 435 affected investors in November 2023. This reflects the regulator’s commitment to ensuring that standards are upheld.</p> 
<h5><strong>Australia Tightens Crypto Oversight Amid Industry Reforms</strong></h5> 
<p>This case is one of several actions by ASIC as it tightens its grip on cryptocurrency regulation. Recently, Australia’s federal court fined Kraken’s local branch A$8 million for similar breaches. Meanwhile, ASIC plans to roll out new <a href="https://www.altcoinbuzz.io/cryptocurrency-news/australia-to-mandate-financial-services-licenses-for-crypto-firms/" target="_blank" rel="noopener">financial licensing requirements for crypto exchanges.&nbsp;</a></p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">Legal proceedings launched by ASIC have seen the Australian operator of the Kraken crypto exchange ordered to pay $8 million for unlawfully issuing a credit facility to more than 1,100 Australian customers <a href="https://t.co/YH8A4QRMTH">https://t.co/YH8A4QRMTH</a> <a href="https://t.co/nB16fnTMmg">pic.twitter.com/nB16fnTMmg</a></p> 
 <p>— ASIC Media (@asicmedia) <a href="https://twitter.com/asicmedia/status/1867043512283177210?ref_src=twsrc%5Etfw">December 12, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p>Speaking at a September summit, Commissioner Alan Kirkland revealed that the Corporations Act now captures major cryptocurrencies like Bitcoin and Ethereum. Additionally, the upcoming licensing framework will increase compliance obligations for crypto platforms operating in Australia. It would also mark a significant shift in the regulation of cryptocurrencies.</p> 
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<h5><strong>Disclaimer</strong></h5> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/binance-australia-sued-over-consumer-protection-breaches/">Binance Australia Sued Over Consumer Protection Breaches</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Binance Australia Sued Over Consumer Protection Breaches

Altcoin Buzz

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