Thailand’s SEC has officially greenlit cryptocurrencies — including bitcoin — and carbon credits as eligible underlyings for regulated derivatives, opening the door for futures, options and other exchange-listed contracts tied to these assets. What changed - The Securities and Exchange Commission (SEC) expanded the country’s derivatives framework to recognize digital assets and carbon credits as valid underlying instruments for exchange-traded derivatives such as those on the Thailand Futures Exchange (TFEX). - The decision builds on an earlier regulatory move from Feb. 12 and follows Cabinet approval to align Thailand’s derivatives market with international standards while preserving supervision, risk controls and investor protections. Why it matters - The change enables regulated crypto-linked derivatives products — a step that could attract institutional and international traders seeking regulated exposure and liquidity. - It signals a strategic push to broaden product offerings, enhance risk management tools, and deepen Thailand’s capital markets by integrating traditional finance with blockchain-based assets. Regulatory next steps - The SEC will draft supporting rules, including updates to derivatives business licenses so licensed digital-asset operators can offer contracts that reference cryptocurrencies. - Exchanges and clearinghouses will review and adapt their frameworks to handle crypto-based products, while TFEX will finalise contract specifications to ensure practical use and robust risk oversight. Official view and market reaction - SEC Secretary-General Pornanong Budsaratragoon said the move is intended to spur market growth, diversify products, and expand investor opportunities while maintaining risk mitigation and supervision. - Industry observers expect the change to help bridge local markets with global digital-asset liquidity and to support future products such as crypto ETFs, which the regulator has previously indicated it plans to accommodate. What to watch - The exact contract specs TFEX designs, timelines for the new licensing and rule changes, and how exchanges and clearinghouses implement risk and custody safeguards. - Whether institutional participation increases and how product launches (including any ETF-like derivatives) perform in attracting cross-border liquidity. Bottom line: Thailand is taking concrete steps to make regulated crypto derivatives a part of its financial ecosystem, positioning the country to compete as a regional hub for digital finance while emphasizing investor protection and market stability. Read more AI-generated news on: undefined/news

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