Australia: Federal Court fined Binance Australia AUD 10 million over compliance failures in crypto derivatives offering

On 27 March 2026, the Federal Court of Australia fined Binance Australia AUD 10 million for breaching the Corporations Act over compliance failures in crypto derivatives offering. It was found that Binance misclassified over 85% of its Australian clients as wholesale investors between July 2022 and April 2023, exposing 524 retail clients to high-risk crypto derivatives without required protections. The judgment found failures in onboarding, compliance systems, staff training, and oversight, including allowing repeated attempts to qualify as sophisticated investors and inadequate verification processes, resulting in over AUD 12 million in client losses and fees. The Court also found other breaches, including failure to provide product disclosure statements and ensure fair and compliant service delivery, and ordered additional costs of AUD 200’000, alongside the penalty.