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Australia proposes closing loophole on crypto-settled derivatives
ASIC says 68% of retail CFD clients lost money in 2023 to 2024, with combined losses of more than A$458 million including A$73 million in fees.
Australia's markets regulator has proposed expanding retail leverage restrictions to certain crypto-settled derivatives to close a regulatory gap it says has left similar products subject to different safeguards, according to CryptoSlate.
On Oct. 12, the Australian Securities and Investments Commission (ASIC) said it wants to extend existing contracts-for-difference (CFD) rules to qualifying derivatives settled through digital assets, after finding that 68% of retail CFD clients lost money during the 2023 to 2024 financial year.
ASIC estimated combined retail losses from CFDs across asset classes at more than A$458 million, including about A$73 million in fees, and said the proposal follows that review.
The regulator also is seeking to extend its investor protections for another decade, keeping them in force until 2037, subject to government approval, CryptoSlate reported.