Australia moves to close crypto derivatives loophole after retail traders lose A$458 million
Australia’s ASIC proposed extending its CFD protections to qualifying derivatives settled in digital assets, closing a gap that could leave economically similar products under different rules. Affected products would face existing leverage caps, margin close-out requirements, negative-balance protections and limits on promotions, with rules based on contract structure and underlying exposure. The regulator also proposed tighter margin calculations, safeguards for discounts, and a 10-year extension of the current order to 2037. ASIC cited retail CFD losses of A$458 million in 2023–24 and said 28 issuers refunded more than A$36 million after margin-netting practices. Some fixed-expiry crypto futures and options may remain outside the framework. The proposals are open for consultation, with submissions due Nov. 9.
