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Australia's ASIC proposes extending CFD protections to crypto-settled derivatives

The Australian Securities and Investments Commission has proposed maintaining its contract for difference protections for another 10 years and broadening the safeguards to cover instruments settled in digital assets.

Screenshot of an ASIC press release titled 'ASIC moves to extend and strengthen CFD consumer protections'.
Image: @Crypto_Briefing

The Australian Securities and Investments Commission (ASIC) is seeking feedback on plans to extend its product intervention order for contracts for difference (CFDs) for an additional 10 years. Under the consultation, the regulator aims to modernize consumer safeguards by broadening their scope beyond traditional cash settlements to include CFDs settled through digital assets or set-off arrangements.[4][1]

The regulator noted that some retail products share the same economic characteristics and risks as standard CFDs but currently fall outside existing intervention rules due to how settlements occur. The proposed updates encompass leverage limits, margin requirements, negative balance protections, and rules for options-based contracts. Industry participants have four weeks to submit feedback, with the consultation window running until November 9, 2026.[4][3][2]

ASIC Commissioner Alan Kirkland stated that the existing intervention order materially reduced harm by curbing drivers such as excessive leverage, cutting aggregate net retail losses by 91% within six months of enactment. Despite that decrease, Kirkland noted that trading CFDs remains hazardous, pointing to recent data showing retail losses exceeded $458 million across a 12-month period, including $73 million in fees.[4]

Key facts

  • ASIC proposed keeping its CFD product intervention order in place for an additional 10 years.
  • The proposed updates expand CFD consumer protections to contracts settled in digital assets or by set-off.
  • The consultation covers leverage limits, margin requirements, negative balance safeguards, and options-based contracts.
  • Industry stakeholders have a four-week window to provide consultation feedback, closing November 9, 2026.
  • ASIC Commissioner Alan Kirkland reported that aggregate net retail CFD losses dropped by 91% within six months of the original order.
  • Recent ASIC data revealed retail client CFD losses exceeded $458 million over 12 months, which included $73 million in fees.

Sources 路 4 sources

  1. CO

    CoinMarketCap@CoinMarketCapPost on X 路

    LATEST: 馃彟 Australia's ASIC has proposed extending its CFD protections for another 10 years and widening the rules to cover CFDs settled in digital assets rather than cash. https://t.co/tgBAguVTnp

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  2. CB

    Crypto BriefingArticle 路

    Australia鈥檚 ASIC seeks to extend trading protections to crypto-settled products ASIC's updated CFD safeguards could reshape digital asset trading, impacting market strategies and regulatory compliance for brokers and traders. The post Australia鈥檚 ASIC seeks to extend trading protections to crypto-settled products appeared first on Crypto Briefing .

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  3. CT

    Coin TelegraphArticle 路

    Australia proposes leverage caps for crypto-settled derivatives ASIC鈥檚 proposal would extend leverage limits and protections against negative balances to certain derivatives settled in digital assets.

    Open source
  4. CB

    Crypto Briefing@Crypto_BriefingPost on X 路

    鈿★笍NEW: Australia's ASIC is consulting on updated CFD safeguards, including digital asset settlements, margin requirements and options-based contracts, by November 9, 2026. https://t.co/vihN8SiutQ

    Open source