- Australia‘s ASIC proposed extending CFD leverage caps and negative-balance protections to derivatives settled in digital assets.
- Crypto-settled contracts tracking non-crypto assets could be covered if they otherwise qualify as CFDs.
- The existing intervention order generally applies to contracts settled in cash or by offsetting obligations.
Australia’s securities regulator proposed on Monday to extend leverage limits and other retail investor safeguards to certain derivatives settled in digital assets. The Australian Securities and Investments Commission (ASIC) wants to expand its existing product intervention order for contracts for difference (CFDs), which let traders bet on price movements without owning the underlying asset.
However, the current rules generally cover contracts settled in cash or by offsetting obligations between the parties. Consequently, ASIC is seeking to add contracts settled by transferring digital assets, including those tracking non-crypto assets, provided they meet the other criteria for a CFD.
The proposal would extend leverage caps and protections against negative balances to these crypto-settled derivatives.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Chipotle’s $4B investment plan may fuel growth despite margin pressure
- FSB flags stablecoin and AI risks ahead of G20 meeting
- Possible Anthropic deal fuels IREN optimism despite concerns
- IMF: Most tokenized stock trades happen off Wall St hours
- Coinbase BTC mortgage product gets thousands of applications
