Australia's securities regulator has filed a lawsuit against Binance for alleged consumer protection failures.

Between July 2022 to April 2023, the exchange classified more than 500 retail investors as 'wholesale clients,' allowing them to trade crypto derivative products.

ASIC has filed a lawsuit in the Federal Court against Binance Australia over alleged consumer protection failures affecting retail clients

Australia's corporate watchdog on Wednesday said it has sued trading platform Binance Australia Derivatives, alleging that retail customers were denied consumer protections after being misclassified as wholesale clients.

The Australian Securities and Investments Commission (ASIC) has launched legal action against Binance Australia Derivatives, accusing the crypto trading platform of misclassifying over 500 retail clients as wholesale investors.