Australia proposes leverage caps for crypto-settled derivatives
Summary
ASIC proposed extending Australia’s CFD safeguards to qualifying contracts settled by transferring digital assets, including contracts tracking non-crypto assets. The rules include leverage caps, position close-outs when account funds fall below required levels, and negative-balance protection. Certain crypto futures and options with fixed expiry dates would remain excluded. ASIC is seeking feedback until Nov. 9. Separately, legislation passed in April will require crypto exchanges and tokenized custody platforms to enter the financial services licensing framework from April 9, 2027; some firms must apply for licenses or seek license changes by Sept. 30.
