Thailand has moved closer to weaving crypto into its mainstream financial system after the Cabinet on Feb. 10 approved a Finance Ministry proposal to let digital assets serve as underlying instruments for regulated derivatives contracts. The change places Thailand among a growing group of Asian markets that are adapting crypto-linked financial products for institutional and retail markets. What changed - The amendment to the Derivatives Act B.E. 2546 (2003) formally permits digital assets—including Bitcoin—to be used as the underlying for futures and options traded on regulated platforms. - The Securities and Exchange Commission (SEC) will update the Derivatives Act and draft implementing regulations covering participation, licensing and supervision of crypto derivatives. - Exchanges such as the Thailand Futures Exchange (TFEX) and clearinghouses will be subject to revised supervisory standards, and the SEC will rewrite derivatives business licenses so digital-asset operators can offer crypto-linked contracts. Regulatory intent and safeguards SEC Secretary-General Pornanong Budsaratragoon described the expansion as aimed at strengthening recognition of cryptocurrencies as an investment asset class, broadening investor access and adding risk-management tools. Regulators said they will work with TFEX to design contract specifications that reflect crypto’s volatility and risk profile, and that investor-protection measures and supervisory safeguards will remain central as the market develops. Carbon credits and climate alignment The amendment also reclassifies carbon credits, clearing the way for physically delivered futures in addition to cash-settled contracts. That move complements Thailand’s draft Climate Change Act and broader carbon-neutrality goals. Context and next steps - This reform builds on Thailand’s 2018 digital-asset regulatory framework, which introduced licensing and consumer protection rules; oversight has tightened since then, even as the central bank continues to ban crypto payments. - The SEC’s 2026 capital markets roadmap includes plans for crypto exchange-traded funds (ETFs)—subject to legal amendments—with officials suggesting crypto ETFs could be launched later this year. - The SEC will next prepare regulatory drafts and revised license conditions; market participants will watch contract specifications, margin and capital requirements, and disclosure standards. Market snapshot and industry reaction As of August 2025, the SEC valued Thailand’s crypto market at roughly $3.19 billion, with average daily trading volumes near $95 million and about 230,000 active accounts—figures that reflect rising participation from retail investors, foreign players and domestic institutions. Industry participants say adding crypto to the derivatives market could boost liquidity and provide useful hedging tools, but caution that capital requirements, transparency and disclosure standards must keep pace to manage systemic and market risk. What to watch - Publication of the SEC’s amended Derivatives Act and supporting regulations - TFEX’s contract specifications for crypto futures/options and clearinghouse rules - Timeline and legal steps for potential crypto ETFs later this year - Any adjustments to capital, margin and disclosure rules to limit systemic exposure Cover image: BTCUSD chart (TradingView) Read more AI-generated news on: undefined/news

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