Australia’s securities regulator is seeking to bring some derivatives settled in digital assets under the country’s retail CFD protections, a move that could extend leverage restrictions and loss safeguards to a broader range of crypto-linked trading products.
The Australian Securities and Investments Commission, or ASIC, said on Monday that it wants to amend the existing framework for contracts for difference. CFDs allow traders to speculate on changes in an asset’s price without taking ownership of the underlying asset.
According to Cointelegraph, the proposed changes would cover certain contracts settled through the transfer of digital assets, including products whose price follows a non-crypto asset. The contracts would need to satisfy the other conditions used to identify a CFD before the protections applied.
What ASIC is proposing
Australia’s current CFD rules generally apply to contracts settled in cash or through offsetting obligations between the parties. ASIC’s proposal would add some arrangements in which settlement occurs by transferring digital assets.
The extension is designed to focus on the structure and risks of the contract, rather than only on whether the underlying asset is a cryptocurrency. As a result, a digital-asset-settled contract linked to a non-crypto asset could also fall within the framework if it meets the relevant CFD criteria.
Not every crypto derivative would be covered. ASIC said certain crypto futures and options with fixed expiration dates would remain outside the CFD rules.
The regulator is accepting feedback on the proposed extension and related amendments until Nov. 9.
Protections for retail traders
Australia introduced its existing CFD framework in 2021. Among other measures, it limits the leverage that providers can offer and requires positions to be closed when the funds in a client’s account fall below specified thresholds.
The framework also includes negative-balance protection. This means a client’s losses on CFD trading are limited to the money held in that CFD account, rather than creating an obligation to pay more than the account balance.
Applying those safeguards to eligible crypto-settled contracts would affect how providers structure and offer the products to retail customers. The proposal does not extend the rules to every digital-asset derivative, and ASIC is still gathering responses before deciding on the amendments.
Wider Australian crypto regulation
The proposal comes as Australia is building a broader regulatory framework for the digital-asset industry. Legislation passed in April is intended to bring crypto exchanges and tokenized custody platforms within the country’s financial services licensing regime. That new framework is scheduled to take effect on April 9, 2027.
ASIC has also told crypto firms using temporary enforcement relief under existing financial services law to apply for licenses by Sept. 30 or request changes to their current licenses. The measures show that licensing and product-specific protections are being developed alongside the proposed CFD changes.
Moneyiar market picture
Moneyiar data at the stated times shows mixed performance among the listed assets:
- Cap (CAP): $0.0935464834, up 1.18% over 24 hours and 22.58% over seven days, as of Oct. 13, 2026, 09:49 +03:30.
- would (WOULD): $0.0351412837, up 0.33% over 24 hours and 10.6% over seven days, as of Sept. 22, 2026, 21:04 +03:30.
- REAL (ASSET): $0.1927052765, up 3.26% over 24 hours but down 2.28% over seven days, as of Oct. 8, 2026, 18:54 +03:30.
- Propy (PRO): $0.3560995973, down 0.59% over 24 hours and 4.28% over seven days, as of Oct. 13, 2026, 09:49 +03:30.
