Australia's financial regulator, the Australian Securities and Investments Commission (ASIC), has initiated legal action against Binance, alleging that the cryptocurrency exchange misclassified 505 retail investors as wholesale clients. This misclassification reportedly left these investors without essential consumer protections. ASIC's filing highlights that 83% of users of Binance Australia Derivatives were affected by this issue. The regulator emphasized the inherent risks associated with crypto derivative products and the necessity for accurate classification of retail clients to ensure their protection.