Regulation Changes Coming to Australia (ASIC)
The Securities and Investments Commission in Australia has begun to get pressured into reducing the leverages with contracts-for-difference. Government Authorities in Australia have started to have to same concerns that the European Union did two years ago. This isn’t surprising as when the ESMA implemented their leverage changes, thousands of traders flocked to new markets. Australia grew to become one of the largest digital currency markets worldwide, with billions transacted through the country monthly. In the twelve months since their popularity grew amongst traders, ASIC is now somewhat forced into new regulation.
Surprisingly, government authorities are requesting that the Australian Securities and Investments Commission review their CFD regulations. This is because ASIC hasn’t finished their anticipated new regulation towards retail derivatives. Subsequently, it’s expected that the CFD Leverage changes won’t come for six to twelve months. Those interested in the retail derivatives in Australia are now concerned that the leverage changes for CFD could alter the potential for growth. Retail markets are quickly becoming the primary source of income for traders, and if Australia’s Securities Investments Commission implements leverage changes will deplete Bitcoin’s CFD value.
The European Securities and Markets Association created contract-for-difference leverages that range from 2:1 to 30:1. It’s expected that ASIC will follow the same principals, making the cryptocurrency market once again more limited.