Australia’s securities regulator proposed on October 12 to bring certain derivatives settled by transferring digital assets into its retail contracts-for-difference framework. The change would apply according to a contract’s features, including how it settles, rather than only whether its underlying asset is cryptocurrency.
The Australian Securities and Investments Commission’s CS 64 consultation is open until 5 pm AEDT on November 9. It proposes amendments to an existing product intervention order. The consultation has not itself put the proposed changes into force.
Settlement is separate from the underlying asset
The current definition generally covers contracts settled in cash or through offsetting obligations between the parties. ASIC proposes adding settlement through a transfer of digital assets. A contract could reference another asset, a rate or an index and still be relevant to the proposed extension.
Digital-asset settlement would not be sufficient on its own. The derivative would also need to meet the other parts of the CFD definition: its value must depend on changes in an underlying reference; it must have no fixed termination date or typically close before that date; and the holder must be able to terminate it.
That distinction limits the scope of the announcement. ASIC says some crypto options and futures with fixed expiry dates would remain outside the order. Cointelegraph’s report also identifies that exclusion. The proposal therefore does not place every crypto derivative into the CFD regime.
A proposed extension, with decisions still ahead
ASIC separately seeks a further ten years for the existing order, which is due to expire on May 23, 2027. An extension requires ministerial approval.
Other proposed amendments address how initial margin is calculated for each CFD, discount-offer records and digital-asset terminology. ASIC is requesting feedback on affected products, issuers and clients, compliance impacts and whether a transition period is needed. Those unresolved implementation questions are part of the consultation, rather than conditions already adopted.