Australia’s securities watchdog ASIC has flagged that crypto perpetual futures are now functioning like contracts for difference while evading local regulatory oversight. In a report released Tuesday following a Sydney roundtable with market leaders, ASIC warned that perpetual futures contracts, which offer leveraged synthetic exposure without expiry dates, closely mirror CFDs in structure and risk yet are predominantly sold to Australians through offshore platforms beyond its jurisdiction.
Both products provide margin-based leveraged exposure without asset ownership. The key difference is mechanical, with CFDs using bilateral provider-set terms while perps rely on funding rates between traders. European regulators including ESMA have already classified certain perps as CFDs, forcing leverage caps down to 2x from advertised rates of 10x for retail clients. Meanwhile, the CFTC announced plans in early 2026 to develop a framework bringing perps onshore to U.S. markets.
ASIC notes the offshore gap creates regulatory uncertainty over whether such crypto-native products fall under its authority or require new jurisdictional clarity.
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FXnCO Insight
** Australian traders using offshore perp platforms should prepare for potential regulatory crackdowns or leverage restrictions as ASIC moves to close the compliance gap.
Source: Finance Magnates