Thailand Approves Cryptocurrencies as Underlying Assets for Derivatives Trading

Thailand has taken a significant regulatory step by approving the use of cryptocurrencies and digital tokens as underlying assets in its derivatives and capital markets, signaling the country's ambition to become a digital asset leader in Southeast Asia.

The Cabinet's approval will enable the Securities and Exchange Commission to modify the Derivatives Trading Act, formally recognizing digital assets as reference instruments for derivatives contracts. Licensed operators will be permitted to offer crypto-linked products such as futures and options under regulatory oversight.

SEC Secretary-General Pornanong Budsaratragoon stated the expansion aims to support emerging asset classes, strengthen crypto's recognition as a legitimate investment category, and improve risk management capabilities for investors. The regulator is currently developing comprehensive rules and licensing protocols for brokers, exchanges, and clearinghouses to accommodate these products.

Binance Thailand's chief executive Nirun Fuwattananukul characterized the decision as a watershed moment, indicating Thailand's forward-looking approach to digital finance. The SEC is collaborating with the Thailand Futures Exchange to establish contract specifications appropriate for digital asset trading.

The amendments also reclassify carbon credits as goods rather than variables, facilitating both physically delivered and cash-settled carbon credit futures in support of Thailand's climate objectives. This development follows Thailand's 2024 approval of its first spot bitcoin ETF, with plans to expand offerings to include other cryptocurrencies like ether.