Australia’s ASIC Proposes New Leverage Limits for Crypto Contracts
- The Australian Securities and Investments Commission (ASIC) proposed extending leverage limits to contracts for difference (CFDs) settled in crypto.
- ASIC aims to include contracts settled by transferring digital assets, expanding protections for retail investors.
- Current regulations, introduced in 2021, cap leverage and provide negative balance protection for clients’ CFD accounts.
- Feedback on the proposed amendments is open until November 9.
- New legislation effective April 9, 2027, will require crypto exchanges and tokenized custody platforms to obtain financial services licenses.
ASIC’s proposal reflects a commitment to enhancing retail investor protections within the evolving cryptocurrency market, particularly regarding CFDs that may involve digital assets.
With feedback due by November, ASIC’s initiative could reshape how contracts involving crypto are regulated in Australia, following existing rules that limit leverage and protect against negative balances.
