Australian ASIC proposes to ban binary options, reducing cryptocurrency leverage to 2x

A consulting paper released today by the Australian Securities and Investments Commission (ASIC) shows plans to impose an injunction on over-the-counter (OTC) binary options and CFDs. This includes a 20:1 leverage limit for all currency pairs. In terms of trading leverage, ASIC is different from the new regulations implemented by the European Union ESMA. The regulator does not list primary and secondary currency pairs, but limits the leverage ratio of all currency pairs to 20:1. The stock index is recommended to be 15:1; commodities (excluding gold) are 10:1; gold is 20:1; cryptocurrency is 2:1 and stocks are 5:1.