Thailand moves to integrate crypto into local derivatives market

Thailand is advancing plans to integrate crypto into the country's regulated derivatives market.

The country's Securities and Exchange Commission recently announced that it will broaden the range of permissible underlying assets under the derivatives regulations to include digital assets and carbon credits. 

The development follows the Cabinet's approval of a proposal to align the Thai derivatives market with international standards while maintaining robust supervision, risk mitigation, and investor protection.

Changes from Thailand's SEC formally recognize digital assets—including cryptocurrencies—as a legitimate investment asset class eligible to underpin regulated derivatives, potentially enabling futures, options, or other contracts tied to assets like bitcoin on platforms such as the Thailand Futures Exchange (TFEX).

"The expansion of permissible goods and variables under the Derivatives Act aims to support new forms of goods and variables," said SEC Secretary-General Pornanong Budsaratragoon. "This development will help promote more inclusive market growth, facilitate diversification and more effective risk management, and expand investment opportunities for a broader range of investors."

Next steps

The SEC plans to draft supporting regulations, including amendments to derivatives business licenses that would permit licensed digital asset operators to offer contracts referencing digital assets. The agency will also review licensing and supervisory frameworks for derivatives exchanges and clearing houses to accommodate crypto as new underlying products.

Additionally, the SEC said it will work with TFEX to finalize contract specifications for products tied to digital assets, to support risk management and real-world market usage.

The integration of digital assets into Thailand's derivatives market is part of the country's ongoing efforts to establish itself as a regional hub for the digital economy. Earlier this year, the SEC announced that it plans to introduce comprehensive regulations on digital asset-related products and activities, covering crypto ETFs.