Update
ASIC Proposes Leverage Caps for Crypto-Settled Derivatives
The Australian Securities and Investments Commission (ASIC) has proposed extending leverage limits and protections against negative balances to certain derivatives settled in digital assets, including those tracking non-crypto assets. This update aims to align the rules for contracts for difference (CFDs) with existing regulations. The proposal covers contracts settled by transferring digital assets, provided they meet the other criteria for a CFD. ASIC is seeking feedback on the proposed extension and amendments until November 9. The regulator also passed legislation in April to bring crypto exchanges and tokenized custody platforms under its financial services licensing framework, with the new regime taking effect on April 9, 2027. Additionally, ASIC required crypto firms relying on temporary enforcement relief under existing financial services law to apply for licenses by September 30 or seek changes to their existing licenses.