Crypto CFDs Regulation Australia Updates and 10-Year Extension

Retail traders using digital assets to settle leveraged contracts would gain the same safeguards as cash-settled traders under ASIC’s proposed changes to crypto CFD regulation in Australia. The Australian Securities and Investments Commission put forward the changes on October 12, alongside a request to extend protections after retail CFD losses exceeded $458 million in the 2023–24 financial year.

Key takeaways

• ASIC wants qualifying digital asset-settled CFDs covered by existing retail safeguards.
• Retail CFD losses included $73 million in fees in 2023–24.
• Certain fixed-expiry crypto futures and options would stay outside the order.
• Public feedback closes on November 9.

According to crypto.news, the proposal would broaden the definition of contracts for difference while preserving leverage restrictions and loss protections. Cointelegraph also reported that qualifying contracts tracking non-crypto assets would be covered when settled through digital asset transfers.

How Australia’s crypto CFD regulation would change

ASIC would extend the existing CFD definition to eligible contracts settled through digital asset transfers. Current rules generally cover cash settlement or the offsetting of obligations between counterparties.