Australian Securities Authority to Investigate Binance

A day after the unilateral move to close the futures accounts of Australian users, the Australian securities agency said it was investigating Binance.

Australian Securities Authority to Investigate Binance

According to a notice posted on February 24, the Australian Securities and Investments Authority (ASIC) is investigating derivatives trading activity on Binance Australia, the Australian branch of Binance.

ASIC said the purpose of the investigation is about the classification activity between retail investors and professional investors at the exchange.

This information comes less than 24 hours after Binance Australia abruptly closed the positions and accounts of some users in Australia with immediate effect.

The exchange claimed on Twitter that it had misclassified about 500 customers into the “Professional Investor” group and let them open futures trading accounts, so it was forced to make adjustments to avoid breaking the law. Australian law only allows licensed investors to engage in derivatives trading.

Binance confirmed that it will compensate the affected users.

The ASIC side also stated:

“ASIC has been aware of Binance’s social media announcement that it made an error in classifying Australian users as professional investors. However, the exchange has not reported the incident to the Commission in accordance with its obligations under the Australian Financial Services License.”

Binance has so far not released the latest information about the information being investigated by the Australian Securities Commission.

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