Binance Australia has been fined A$10 million ($6.9 million USD) by a court for incorrectly classifying most of its customers. The subsidiary Binance Australia Derivatives misclassified over 85% of users as wholesale clients, allowing them to access high-risk derivatives without proper safeguards. This failure resulted in approximately $12 million USD in client losses from trading and fees. The Australian regulator cited poor onboarding and compliance systems as the cause.
On March 27, 2026, a court imposed the fine on Binance Australia Derivatives, which is operated by Oztures Trading Pty Ltd. The entity failed to correctly categorize its users between July 2022 and April 2023. This error permitted hundreds of regular customers to access complex crypto derivatives without required safety features.
The Australian Securities and Investments Commission (ASIC) stated the mistake put nearly 600 customers at risk. Clients incurred trading losses of A$8.66 million and paid A$4 million in fees as reported. The court indicated the error stemmed from poor customer onboarding systems, compliance oversight, and employee training.
ASIC Chairperson Joe Longo emphasized the seriousness of the failure. “This failure directly caused A$12 million in losses to clients and should serve as a clear warning to all crypto companies operating in Australia,” Longo said.
This adds to Binance‘s history of regulatory challenges globally. Founder Changpeng Zhao stepped down as CEO in November 2023 and served a prison term, with the company paying a multibillion-dollar fine. He was pardoned in 2025 by U.S. President Donald Trump and remains the firm’s largest shareholder.
Current CEO Richard Teng leads the exchange. The Australian fine reflects a wider regulatory crackdown on crypto exchanges for compliance with local laws.
