Australia is proposing leverage caps on crypto-settled derivatives. Regulators keep squeezing leverage out of crypto markets. Lower max leverage means less speculative flow and pressure on exchange vo

What happened: Australia's ASIC proposed extending CFD leverage caps and negative balance protection to derivatives settled by transferring digital assets. Crypto futures and options with fixed expirations would stay outside the CFD rules. Key numbers: Existing framework introduced 2021. Feedback open until Nov. 9. Licensing regime takes effect April 9, 2027. Firms must apply for licenses by Sept. 30. Why it matters: The proposal widens retail safeguards to crypto-settled contracts, while ASIC's licensing deadlines and the 2027 regime increase compliance obligations for crypto firms.

Australia's ASIC proposed extending CFD leverage caps and negative balance protection to derivatives settled by transferring digital assets. Crypto futures and options with fixed expirations would stay outside the CFD rules.

The proposal widens retail safeguards to crypto-settled contracts, while ASIC's licensing deadlines and the 2027 regime increase compliance obligations for crypto firms.