Binance Australia Derivatives, operated by Oztures Trading, has been fined $6.9 million after a court found it misclassified more than 85% of its customers as wholesale investors between July 2022 and April 2023, according to a press release from the Australian Securities and Investments Commission (ASIC) on Friday.
This misclassification exposed 524 retail investors to high-risk crypto derivatives products without the necessary safeguards, resulting in losses and fees of over $8 million.
Binance acknowledged significant compliance failures, including a flawed onboarding process, insufficient staff training, and insufficient oversight by senior compliance staff. Clients were able to repeatedly attempt certification quizzes until they passed, and some were approved without proper verification.
In addition to the fine, Binance must pay $9 million in restitution and cover ASIC’s legal costs.
“All financial services businesses must comply with the law from day one and have appropriate customer onboarding systems and processes in place. This includes financial services related to crypto and digital assets,” ASIC said.
ASIC launched an investigation into Binance’s Australian derivatives operations in 2022. As a result of this investigation, Oztures’ financial services license was revoked and its derivatives business was closed in April 2023.
Binance said in a statement that the fine addresses historical issues with misclassified customers.
The company said it identified the issue, reported it to regulators, and fully remediated it in 2023. At the same time, Oztures voluntarily surrendered its license and ceased its derivatives business.
Although the Australian case has been resolved, Binance is now facing new scrutiny in the United States and a Department of Justice investigation following reports that it processed nearly $2 billion through accounts linked to Iran.
Binance denies any wrongdoing, claims the reporting was false, damaging, and misleading, and filed a lawsuit against the Wall Street Journal over an article published in February 2026, alleging it provoked unnecessary government investigation and damaged its reputation.
