An Australian court has fined a Binance subsidiary $6.9 million for breaching its customer access rules.

On March 27, Reuters reported that the Federal Court of Australia fined Binance's local subsidiary A$10 million (approximately US$6.9 million) for incorrectly classifying 524 retail customers as wholesale customers between July 2022 and April 2023. This exposed them to high-risk crypto derivatives without adequate consumer protection. The incorrectly classified customers incurred A$8.7 million in trading losses and paid A$3.9 million in fees. The Australian Securities and Investments Commission (ASIC) stated that Binance Australia acknowledged serious flaws in its customer onboarding and staff training, allowing users to repeatedly attempt multiple-choice tests until they achieved a passing score. In an email response, Binance Australia stated that the issue was discovered and reported to the regulator by the company itself, and that it completed corrective action in 2023, compensating affected customers with approximately AUD 13.1 million.