According to Cointelegraph, Australia’s financial regulator ASIC has proposed new limits on leverage for derivatives that are settled using digital assets. The proposal aims to apply existing protective measures—such as preventing negative equity balances—to certain crypto‑settled derivative products. Under the draft rules, leverage thresholds would be set and oversight extended to these instruments.
The regulator indicated that the measure targets derivatives whose settlement occurs in cryptocurrency rather than traditional fiat currencies. By introducing caps on how much margin can be used, ASIC seeks to reduce exposure risk for investors and maintain market stability. The proposal also retains safeguards against accounts falling into negative balance situations.
