Australia is set to cap leverage on crypto derivatives at 2x.
ASIC’s October 12 proposal would extend the existing leverage cap for CFDs (contracts for difference) to derivatives settled in digital assets. The retail leverage cap for crypto CFDs would be 2:1—meaning you’d need at least $5,000 in margin to open a $10,000 position.
The figures speak for themselves: In the 2023–24 financial year, 68% of retail CFD clients lost money net, losing a total of A$458 million and paying another A$73 million in fees. In the six months after the 2021 intervention order took effect, quarterly retail losses fell from A$372 million to A$33 million—a 91% drop.
The proposal would also extend the intervention order by 10 years, to 2037 (it is currently due to expire in May 2027). The consultation closes on November 9.
Leverage is one of the fastest ways for retail investors to lose money, and this time regulators have hit the industry where it hurts.
#澳大利亚 #Regulation
Personal opinion only; this is not investment advice.
ASIC’s October 12 proposal would extend the existing leverage cap for CFDs (contracts for difference) to derivatives settled in digital assets. The retail leverage cap for crypto CFDs would be 2:1—meaning you’d need at least $5,000 in margin to open a $10,000 position.
The figures speak for themselves: In the 2023–24 financial year, 68% of retail CFD clients lost money net, losing a total of A$458 million and paying another A$73 million in fees. In the six months after the 2021 intervention order took effect, quarterly retail losses fell from A$372 million to A$33 million—a 91% drop.
The proposal would also extend the intervention order by 10 years, to 2037 (it is currently due to expire in May 2027). The consultation closes on November 9.
Leverage is one of the fastest ways for retail investors to lose money, and this time regulators have hit the industry where it hurts.
#澳大利亚 #Regulation
Personal opinion only; this is not investment advice.