ME News reports that on October 12 (UTC+8), the Australian Securities and Investments Commission (ASIC) plans to expand its CFD regulations to include derivatives settled by digital asset transfers, provided they meet other specified conditions. These products will be subject to leverage limits, mandatory position closeouts, and negative balance protection, except for certain cryptocurrency futures and options with fixed expiration dates. ASIC is seeking feedback from the industry and stakeholders on these proposed amendments, with a deadline of November 9. Australia’s current CFD regulatory framework, introduced in 2021, requires service providers to close positions when account equity falls below a specified level, and provides negative balance protection to limit client losses to the funds in their CFD accounts. In April, Australia enacted legislation bringing cryptocurrency exchanges and tokenized custody platforms under the financial services licensing framework; the new regime will take effect on April 9, 2027. (Source: ODAILY)
ASIC proposes extending CFD investor protections to crypto-settled derivatives.
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Summary
On October 12 (UTC+8), the Australian Securities and Investments Commission (ASIC) proposed extending contract for difference (CFD) rules to crypto-settled derivatives, under specific conditions. The plan includes leverage limits, mandatory liquidation, and negative balance protection, though certain crypto futures and options would be excluded. ASIC is accepting feedback until November 9. Australia’s current CFD rules, introduced in 2021, require automatic liquidation when account balances fall below a threshold and cap losses to the funds in the account. Earlier this year, Australia enacted regulations for crypto exchanges, which will integrate digital asset platforms into the financial services licensing framework by April 9, 2027. This move could impact liquidity and crypto markets.
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