Thailand Moves Forward with Crypto as Collateral in Derivatives Market

TLDR

• Thailand’s government has approved the use of digital assets as underlying assets in derivatives and capital markets.
• The Securities and Exchange Commission will amend the Derivatives Act to include cryptocurrencies and carbon credits.
• The move aims to position Thailand as a regional hub for institutional crypto trading and enhance investor protection.
• Binance Thailand’s CEO praised the decision, calling it a “watershed moment” for the country’s financial market.
• The Thai SEC plans to introduce Bitcoin futures and crypto-related exchange-traded products by 2026.
• The SEC will collaborate with the Thailand Futures Exchange to finalize contract specifications for crypto-based financial products.

Thailand’s government has approved a proposal by the Finance Ministry to allow digital assets to be used as underlying assets in the country’s derivatives and capital markets. This decision aims to modernize Thailand’s financial markets and align them with global standards. It is also seen as a move to enhance regulatory oversight and boost investor protection.

The Securities and Exchange Commission (SEC) will amend the Derivatives Act to accommodate this change, expanding the range of assets to include cryptocurrencies such as Bitcoin (BTC) and carbon credits. This development signals a shift in Thailand’s stance on digital assets, viewing them as more than speculative investments. The change reflects a growing recognition of crypto’s potential in transforming capital markets.

Thailand’s Expanding Crypto Market

The integration of digital assets into the Thai derivatives market is part of the government’s broader strategy to position the country as a regional crypto hub. The Thai SEC plans to update regulations and introduce Bitcoin futures and other crypto-related exchange-traded products in 2026. The move is focused on attracting institutional investors while expanding the range of investment options for both local and international traders.

Binance Thailand’s CEO, Nirun Fuwattananukul, praised the decision, calling it a “watershed moment.” He emphasized that it highlights Thailand’s ambition to become a leader in Southeast Asia’s digital economy. He also noted that this policy change would send a clear message that Thailand is embracing digital assets as a new investment asset class.

SEC’s Role and Future Plans

The Thai SEC will oversee the regulatory framework changes to support the integration of digital assets into the financial market. The SEC’s role includes drafting new regulations and expanding licensing for digital asset operators. It also plans to collaborate with the Thailand Futures Exchange (TFEX) to finalize contract specifications and support risk management strategies for crypto-based financial products.

The SEC’s amendments to the Derivatives Act aim to promote inclusiveness, portfolio diversification, and risk management. The government wants to create more opportunities for institutional investors. It also plans to offer new financial products.

The SEC will update its supervisory frameworks to recognize crypto as a legitimate asset class. This change will transform Thailand’s financial infrastructure.

This move is part of Thailand’s broader effort to integrate cryptocurrency and blockchain into mainstream financial markets. The central bank has banned crypto payments, but this regulatory shift shows recognition of the growing role of digital assets.

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