Australian Securities and Investments Commission (ASIC), is conducting a targeted review of Binance Australia's derivatives business, the regulator said on Friday.

The development comes a day after Binance said that it had incorrectly tagged 500 Australian users as "wholesale investors," resulting in their derivative positions being unceremoniously closed. Local regulations do not allow retail traders to trade futures and financial derivatives.

Binance said that it had already contacted all impacted users and would fully compensate them.

The review by the Australian markets regulator, includes the entity's "classification of retail clients and wholesale clients," an ASIC spokesperson said.

(By Amitoj Singh)

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