Australia proposes leverage caps for crypto-settled derivatives
ASIC’s proposal would extend leverage limits and protections against negative balances to certain derivatives settled in digital assets.
Australia's securities regulator, ASIC, has proposed new rules that would impose leverage limits and protect against negative balances on certain crypto-settled derivatives. The proposal extends safeguards to contracts for difference (CFDs) settled in digital assets, while keeping crypto futures and options with fixed expiration dates outside the rules.
ASIC aims to gather feedback on the proposed changes until November 9. Additionally, Australia recently passed legislation in April to incorporate crypto exchanges and tokenized custody platforms into its financial services licensing framework, with the new regime set to launch on April 9, 2027.
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