Australian ASIC Proposes Extending CFD Protections to Crypto-Settled Contracts

According to Deep Tide TechFlow on October 12, as reported by Cointelegraph, the Australian Securities and Investments Commission (ASIC) proposed on Monday to extend the current regulatory rules for Contracts for Difference (CFDs) to trading contracts settled in digital assets. This initiative aims to bring contracts that are settled through the transfer of digital assets and meet other CFD standards under regulatory oversight, including derivatives that track the prices of non-crypto assets. However, crypto futures and options with fixed expiration dates will remain excluded from these rules. The existing framework currently in effect in Australia was introduced in 2021 and includes key measures such as setting leverage limits, requiring service providers to forcibly close positions when account funds drop to a certain level, and offering negative balance protection to ensure that customer losses do not exceed the funds in their accounts. ASIC is now seeking public feedback on the proposed extension and related amendments, with the consultation period ending on November 9.