ASIC proposes new regulations for crypto derivatives and platforms

The Australian Securities and Investments Commission (ASIC) has announced proposals to expand investor protections and establish new standards for cryptocurrency-related financial products and platforms.

One proposal seeks to extend existing Contract for Difference (CFD) regulations to include derivatives settled using digital assets. This move aims to ensure economic parity between cash-settled and crypto-settled products. ASIC noted that in the 2023–24 period, 68% of retail CFD customers incurred losses, totaling over $458 million AUD. The agency also intends to clarify margin calculation requirements to prevent practices that artificially reduce margin requirements.

Separately, ASIC is seeking public feedback on capital, custody, and trading standards for crypto platforms ahead of a new licensing framework set to take effect in April 2027. Proposed standards include requirements for financial resources, customer-asset protection, and restrictions on platforms trading on their own accounts. Under one proposed capital model, platforms without qualifying third-party custody might require net tangible assets of at least $9.7 million or 10% of average revenue. The consultation also addresses the use of offshore custodians and the necessity of emergency access to private keys.