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first_img Australia's ASIC plans to extend CFD investor protection to crypto-settled derivatives

According to Cointelegraph, the Australian Securities and Investments Commission (ASIC) has proposed to expand the regulatory scope of Contracts for Difference (CFD) to include derivatives settled using digital assets.ASIC aims to add contracts settled through the transfer of digital assets to its definition of CFDs, rather than being limited to contracts settled in cash or offset transactions, provided that these contracts meet other identification criteria for CFDs. If the proposal is approved, Australian traders using crypto-settled CFDs will receive the same protections as cash-settled CFD traders.ASIC has made it clear that certain cryptocurrency futures and options with fixed expiration dates will remain outside this framework. CFDs allow traders to speculate on price fluctuations without holding the underlying asset. The current framework implemented in Australia since 2021 includes safeguards such as leverage limits, mandatory margin calls, and negative balance protection, which limits customer losses to the funds within their CFD trading accounts.ASIC is seeking feedback from the industry and stakeholders on the proposed expansion and revisions, with a deadline of November 9. This move comes as Australia strengthens its broader regulatory framework for digital assets.In April of this year, Australia legislated to include cryptocurrency exchanges and tokenized custody platforms within its financial services licensing framework, with the new system set to take effect on April 9, 2027. ASIC has also required crypto companies relying on temporary enforcement exemptions under existing financial services laws to apply for licenses or seek changes to existing licenses by September 30.

first_img Broadcom CEO: Many AI investors are like casino gamblers

According to Bloomberg, Hock Tan, CEO of chip company Broadcom, stated at an event in Singapore on Monday that the artificial intelligence craze has attracted a group of investors with strategies similar to gamblers, some of whom have little understanding of what they are betting on. He mentioned that many investors "don't even know what they are investing in," setting extremely high expectations, resulting in a situation that is "almost like being in a casino," and specifically pointed to the investment frenzy driven by a lack of understanding of cutting-edge large language models.As the head of a company that designs key components for global data centers, Tan also questioned whether companies are wasting money on AI projects and the long-term economics of AI labs that are continuously losing money. He noted that ChatGPT developer OpenAI's annualized revenue reached $50 billion in September, indicating a viable model, but it does not guarantee long-term profitability; it is still losing money due to high training costs, and currently only suggests that cutting-edge generative models have significant potential revenue growth.Tan also warned that a lack of capital could become the next constraint on industry growth. The Australia-based data center company Firmus Grid, supported by Nvidia, withdrew its planned $5.5 billion IPO last week. Before Tan's remarks, DBS Group CEO Tan Su Shan stated that after a large amount of investment, the market is re-pricing the risks associated with AI financing.
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