Australia’s Finance Regulator Opens Targeted Review Into Binance

Australia’s financial regulator will carry out a “targeted review’ into Binance’s derivatives business in the country after the company revealed it had classed some users incorrectly. On Thursday, Binance tweeted that it had liquidated the positions of 500 of its users. Under Australian law, a wholesale investor is someone who has more experience trading and potentially more funds to do so. If they do not meet the criteria to be a wholesale client, they are classed as retail traders, who are not allowed to trade derivatives. In response to the announcement, ASIC said it was looking into Binance’s derivatives arm, and noted that it had not been contacted by the company directly about the error. citing high rates of losses among traders.