Australia's securities regulator wants to extend leverage limits and other retail safeguards to certain trading contracts settled in crypto. ASIC is seeking feedback on the proposal until Nov. 9.
The Australian Securities and Investments Commission (ASIC) proposed on Monday expanding its rules for contracts for difference (CFDs) to cover contracts settled in digital assets. CFDs let traders bet on price movements without owning the underlying asset.
What the proposal would change
The current rules generally cover contracts settled in cash or by offsetting obligations between the parties. ASIC wants to add contracts settled by transferring digital assets, including those tracking non-crypto assets, provided they meet the other criteria for a CFD.
However, ASIC said that certain crypto futures and options with fixed expiration dates would remain outside the CFD rules.
Existing safeguards for retail traders
Australia's framework, introduced in 2021, caps leverage and requires providers to close positions when account funds fall below specified levels. Negative balance protection also limits losses to the funds in a client's CFD trading account.
The regulator is seeking feedback until Nov. 9 on the proposed extension and amendments.
Wider crypto licensing push
Separately, Australia passed legislation in April to bring crypto exchanges and tokenized custody platforms under its financial services licensing framework. The new regime takes effect on April 9, 2027.
ASIC also required crypto firms relying on temporary enforcement relief under existing financial services law to apply for licenses by Sept. 30 or seek changes to their existing licenses.
Source: Cointelegraph
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