Binance Australia Derivatives, operated by Oztures Trading Pty Ltd, is set to pay $13.1 million in restitution payments to its patrons following regulatory breaches identified by the Australian Securities and Investments Commission (ASIC). The breaches, primarily related to the misclassification of users and failure to provide necessary protections, resulted in net trading losses and fees that will now be reimbursed to the clients, as announced by ASIC on Thursday.
The restitution follows a series of events that have seen Binance face increased scrutiny from regulatory bodies globally. In April 2023, after ASIC's focused examination and a notice of hearing, Binance Australia Derivatives opted for voluntary license cancellation, which led to subsequent raids on its Australian facilities.
The regulatory issues have also led to a mass exodus of banking partners in Australia for Binance. Notable financial institutions such as Cuscal and Westpac have terminated transfers to Binance entities. The ASIC announcement echoed global regulatory warnings against Binance, emphasizing a lawsuit by the Commodities Futures Trading Commission.
The restitution payment is seen as part of the ongoing efforts by regulatory bodies to ensure the protection of investors in the volatile cryptocurrency markets. It underscores the importance of compliance with local regulations for companies operating in these markets.
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