They do have a progressive limit raising system where your limit goes up for each successful transaction, and a 7 day hold on the first transaction (which is limited to $100). This will help protect them from casual scamming.
That makes good sense. Protection from casual scammers is relatively easy, it's the dedicated scammers you have to be careful of.
The fact that they claim their product is taxed as a financial product but they're not registered to deal in financial products is another worry.
Not with you on that one. Calling something "X" for tax purposes is not the same as saying something
is "X".
Some people are bothered by the fact Mr. Zhou is a principal. I wasn't on the scene then but apparently he has a controversial history with his previous ventures.
Dunno about anyone else, but I think keeping any more than a couple of coins on any exchange is risky. Move them home, move them offline.
Another pink flag is the very low spread they charge. AFAIK it is far tighter than any competitor in the Australian market which makes you wonder, why? A grocer undercuts his competitor by 5c, not a dollar. Businesses with extraordinary prices often have non-business motives, such as scamming or money laundering.
Maybe they recognise that Aussie exchanges are gouging the hell out of us locals, and want to become
the Australian bitcoin exchange (they've said as much). Maybe they are hoping that by becoming internationally competitive, not just locally competitive, they can increase the size of the market? Makes some sense to me.