Australian regulators may change CFD laws and it could affect Bitcoin traders
Australian regulators may be pressured into reducing leverage in CFD's just like they did in Europe with ESMA.
When the new EMSA regulations kicked in in Europe traders flocked to other jurisdictions including Australia.
Brokers in the UK that have dual regulations were offering their client's accounts based out in Australia to avoid the new rules.
Now it has been said that the Australian Securities and Investments Commission (ASIC) who are still yet to deliver its ruling on the fate of the retail derivatives industry may introduce new rules.
According to sources, some new information has come to light that the Aussie regulator sought justification to use its product intervention powers before they were granted.
These new developments may affect cryptocurrency derivatives traders who trade crypto CFD's with an Australian based broker. Trading Bitcoin CFD's requires lots of leverage to make money for the swings in the market.
Currently, if you enter a trade with USD 100 and the leverage is 1:10, you get to trade with USD 1000 instead.
In some cases, ESMA changed the leverage on some products from 30:1 to just 2:1. Imagine that with a Bitcoin CFD.
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
