Thailand Moves Ahead with Crypto as Collateral in Derivatives Market

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TLDR

  • Thailand’s government has greenlit the use of digital assets as underlying assets in the country’s derivatives and capital markets.
  • The Securities and Exchange Commission will revise the Derivatives Act to incorporate cryptocurrencies and carbon credits.
  • This step aims to establish Thailand as a regional hub for institutional crypto trading and strengthen investor protection.
  • Binance Thailand’s chief executive lauded the decision, calling it a “watershed moment” for the nation’s financial market.
  • The Thai SEC intends to launch Bitcoin futures and crypto-related exchange-traded products by 2026.
  • The SEC will partner with the Thailand Futures Exchange to finalize contract specifications for crypto-based financial products.

Thailand’s government has approved a Finance Ministry proposal allowing digital assets to serve 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, while also enhancing regulatory oversight and boosting investor protection.

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

Thailand’s Expanding Crypto Market

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

Binance Thailand’s CEO, Nirun Fuwattananukul, praised the decision, terming it a “watershed moment.” He emphasized that it highlights Thailand’s ambition to become a leader in Southeast Asia’s digital economy, adding that the policy change will send a clear message that Thailand embraces digital assets as a new investment class.

SEC’s Role and Future Plans

The Thai SEC will oversee regulatory framework changes to support digital assets’ integration into the financial market. Its responsibilities include drafting new rules and expanding licensing for digital asset operators, as well as collaborating with the Thailand Futures Exchange (TFEX) to finalize contract specifications and support risk management for crypto-based products.

The SEC’s Derivatives Act amendments aim to promote inclusivity, portfolio diversification, and risk management. The government seeks to create more opportunities for institutional investors and offer new financial products.

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

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