Key facts
- ASIC proposed extending leverage limits and negative balance protections to certain derivatives settled in digital assets.
- The proposed rules would apply to contracts settled by transferring digital assets, provided they meet other CFD criteria.
- Certain crypto futures and options with fixed expiration dates would remain outside the CFD rules.
- Australia's existing framework caps leverage and requires providers to close positions when account funds fall below specified levels.
- Feedback on the proposal is open until November 9.
- New crypto licensing framework takes effect April 9, 2027.
Australia's securities regulator, the Australian Securities and Investments Commission (ASIC), has proposed extending leverage limits and other retail investor safeguards to certain trading contracts settled in crypto. The proposal, announced on Monday, aims to expand existing rules for contracts for difference (CFDs) to include those settled by transferring digital assets, provided they meet other CFD criteria.