In brief
- Thailand has approved changes to let digital assets back derivatives.
- The country’s SEC will update licenses and set contract rules with TFEX.
- Local observers say the reform is overdue, but warn weak safeguards could raise systemic risk.
Thailand’s Cabinet has approved key changes to expand the types of assets allowed under the country’s Derivatives Act.
Under the new regime, crypto would be permitted to serve as underlying instruments for regulated derivatives products, reinforcing their recognition as an investment asset class within Thailand’s formal capital markets framework.
“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,” SEC Secretary-General Pornanong Budsaratragoon said in a statement.
Earlier this year, Thailand’s SEC outlined a three-year capital markets plan that includes tokenization initiatives and the development of crypto exchange-traded funds, signaling a push to integrate crypto more directly into the country’s regulated investment ecosystem.
The regulator said Wednesday it will draft follow-up rules to amend derivatives licenses so digital asset operators can offer crypto-linked contracts, review supervisory requirements for exchanges and clearing houses, and coordinate with Thailand Futures Exchange Public Company Limited (TFEX) on contract specifications aligned with the risk profile of digital assets.
Local observers in conversation with Decrypt said the reform is overdue and largely reflects an effort to bring digital asset activity into a clearer legal framework while preserving safeguards around disclosure and capital standards.
“Digital assets already function as financial instruments in practice,” Pichapen Prateepavanich, policy strategist and founder of infrastructure firm Gather Beyond, told Decrypt.
Expanding the Derivatives Act means the Thai SEC is “aligning regulation with market reality. It moves activity into a clear legal structure,” Prateepavanich added.
“If properly structured, they allow for hedging, better liquidity, and the kind of institutional participation we need. Otherwise, our markets remain thin and reactive as now,” she said.
Still, expanding the scope “without simultaneously strengthening disclosure standards and capital requirements would increase systemic risk,” she noted.
The principle to maintain is that innovation should sit firmly within the rule of law and investor protection, she said, adding that the reform could strengthen Thailand’s position as a serious jurisdiction if executed carefully.
Crypto policy in Thailand
Thailand’s crypto regime began taking shape in 2018 with the Emergency Decree on Digital Asset Businesses, giving the SEC licensing and enforcement authority over exchanges and token issuers. The regulator approved domestic platforms and pursued unlicensed operators, including a criminal complaint against Binance in the years that followed.
In the following years, oversight expanded to include investor protection and market conduct, including a ban on using crypto for payments, tighter operational rules for licensed firms, and new rules for investments in mutual and private funds. Last year, the Thai SEC approved stablecoin trading on local exchanges.
Since then, the regulator has paired stricter cross-border oversight with broader market integration, proposing to allow funds to invest in digital assets and outlining plans that include tokenization and crypto ETFs.
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