ASIC Crypto CFD Rules Now Reach Contracts Settled in Digital Assets

ASIC crypto CFD rules are about to cover contracts that settle in tokens, not just in cash. On October 12 the Australian regulator published a draft that would extend its CFD product intervention order by ten years, to 2037, and widen the CFD definition to include contracts settled by transfer of digital assets, according to LeapRate. The draft is consultation CS 64, released with media release 26-239MR, and feedback closes at 5pm AEDT on November 9, 2026.

This matters for perp traders because ASIC has already said, in writing, that crypto perpetuals look like CFDs. The new draft does not name perps. It does remove one of the easiest arguments for why a crypto-settled contract might sit outside the CFD rulebook.

What the ASIC CFD Draft Actually Changes

The core of the proposal is definitional. Per Finance Magnates, ASIC would replace the word "cryptoasset" with "digital asset" and allow termination obligations under a CFD to be settled in cash, by digital asset transfer, or by set-off. In plain terms: paying out a contract in USDC or BTC instead of dollars would no longer change what the contract is.

The draft also tightens margin mechanics. Initial margin would be applied to each CFD separately, with no netting of long and short positions, and ASIC sets out how to margin CFDs over options. Where losses are capped at the premium, initial margin equals the premium. Otherwise it is calculated as if the CFD referenced the option's underlying, per the same Finance Magnates report.

The extension itself still needs Ministerial approval. The current order took effect on March 29, 2021, was extended in April 2022, and expires on May 23, 2027, according to LeapRate.

The 2:1 Crypto Cap That Comes With the Order

The order is not just a label. It carries hard limits. Under the version in force since March 2021, retail CFDs over cryptocurrency carry a minimum margin of 50%, which works out to a maximum ratio of 2:1, down from 10:1 before the order, according to an IG client explainer. Major FX pairs sit at 30:1 and shares at 5:1.

The same explainer describes the standard close-out rule: if total account funds, including unrealized P&L, fall below 50% of the margin required for all open CFD positions, one or more positions are closed. Negative balance protection caps a client's loss at the funds in the account.

ASIC's case for keeping all of this rests on its own data. Aggregate retail net losses fell 91% in the first six months of the order, from $372 million to $33 million a quarter, margin close-outs fell 87% a quarter, and active retail accounts dropped 29%, from 504,905 to 357,841, per LeapRate. Losses over the latest 12 months still exceeded $458 million, including $73 million in fees.

Why Crypto Perps Are in the Frame

ASIC drew the link itself in June. Its report REP 835, released on June 30, said perps offer exposure that resembles CFDs but are typically sold to Australians through offshore platforms outside ASIC's reach, according to Finance Magnates. The difference ASIC highlighted was who sets the cost of carry: a CFD provider fixes financing charges and margin, while a perp uses a funding rate exchanged between longs and shorts.

The same report noted that Hyperliquid averaged 72% of the perp DEX segment through 2025. ASIC Commissioner Simone Constant put the cross-border problem in one line: "Geographic moats look like a thing of the past."

The October draft has a carve-out worth reading closely. Some crypto futures and options with fixed maturity dates stay outside the CFD regime, according to Digital Today, which also reported that exchanges and derivatives providers need to recheck how their products are classified. A perpetual has no maturity date by design, so that particular exit is not available to it. Whether a specific perp meets the rest of the CFD test is a legal question the draft does not answer.

Where This Sits in Europe and Australia's Licensing Clock

Australia is not moving alone. Finance Magnates reported in June that ESMA told firms earlier in 2026 that perps meeting the CFD definition fall under EU intervention measures, and that Spain told Cyprus-licensed brokers to treat perps and spot-quoted futures as CFDs. Under EU rules that would cap retail crypto exposure at 2x, against the 10x some venues advertise.

The licensing timeline runs in parallel. Australia passed a bill in April bringing crypto exchanges and tokenised custody platforms into the financial services licensing framework, effective April 9, 2027, and firms relying on temporary forbearance had to apply for licences by September 30, per Digital Today.

Put the two together and the direction is clear. A licensed Australian venue offering a crypto-settled contract to retail would have to argue why it is not a CFD, and the cash-settlement argument is being removed.

What It Means for Order Flow

For traders, the practical effect is on where retail size sits and how it gets flushed. A 2:1 cap with a 50% close-out produces a very different liquidation profile from high-multiple perps with exchange-defined maintenance margin. If onshore retail flow is forced into low-ratio products, the high-multiple flow that remains on offshore and onchain venues becomes more concentrated, and its liquidation clusters matter more for price.

The netting ban is the second detail to watch. Requiring initial margin on each leg means a hedged long and short post margin on both sides instead of on the net exposure, which makes hedged retail books more expensive to carry and tends to push that activity elsewhere.

None of this is final until the consultation closes on November 9 and the Minister signs off. Until then, the useful signal is where liquidation risk is building on venues outside the order. The Buildix liquidation map shows where estimated liquidation clusters sit, and pair pages such as buildix.trade/pair/BTC put CVD and open interest next to them, so you can see whether a move is being driven by forced closes or by real spot demand.

The rule ASIC is drafting will not change Hyperliquid's margin engine. It can change who is allowed to trade against it, and at what size, which is what moves the book.