Aussie regulators review Binance Australia Derivatives over account closures

A day after Binance Australia Derivatives sent notifications of account closures to users it wrongly classified, regulators in Australia said they’re looking into the company.
Binance Australia Derivatives sent an abrupt message to a select group of users on Feb. 23, saying it would be immediately closing their accounts due to a false classification of some users as “wholesale clients.”
This incident caused a flurry of responses from users on social media, and the next day, the Australian Securities and Investments Commission (ASIC) announced it would be conducting a “targeted review” of Binance’s local derivatives operations.
According to a statement from a spokesperson of the regulator on Feb. 24, the review of Binance Australia Derivatives will include the company’s “classification of retail clients and wholesale clients.“
The spokesperson added:
“It has not yet reported these matters to ASIC in accordance with its obligations under its Australian financial services license.”
However, the spokesperson said the regulator “is aware of Binance’s social media posts,” which were made shortly after users began posting screenshots of the notices on Twitter.
Binance took to social media to clarify the incident, saying that it closed derivatives positions and accounts for some users who they incorrectly classified as “wholesale clients.” Currently the platform is only available to wholesale investors.