Thailand has taken a significant step towards formally integrating digital assets into its financial system. The country’s cabinet recently approved a proposal allowing cryptocurrencies and other digital tokens to be used as underlying assets in derivatives and investment markets. This decision marks digital assets as a legitimate asset class capable of bringing substantial change to the investment landscape.
Niran Fuatananukul, CEO of Binance Thailand, described this move as a milestone for the nation’s investment market, positioning Thailand as a leading player in Southeast Asia’s digital economy. Under this initiative, the Securities and Exchange Commission (SEC) will amend the Derivatives Trading Act to officially recognize digital assets for derivatives trading. Licensed operators will then be authorized to offer futures and options contracts linked to cryptocurrencies under appropriate regulatory oversight.
According to SEC Secretary-General Pornanong Budsaratragoon, the goal is to support new asset classes like digital assets, enhance portfolio diversification for investors, and strengthen risk management. The SEC is developing detailed regulations and licensing frameworks for derivatives brokers, exchanges, and clearinghouses to effectively govern crypto-based products. In collaboration with the Thailand Futures Exchange (TFEX), contract specifications are being tailored to reflect the risk profile and practical use of digital assets.
Beyond cryptocurrencies, carbon credits are also being classified as “goods,” paving the way for physically delivered carbon credit futures. This aligns with Thailand’s environmental and carbon neutrality objectives. The country has also finalized a comprehensive regulatory framework for Bitcoin, enabling exchange-traded funds (ETFs), futures trading, and tokenized investment products related to Bitcoin and other cryptocurrencies. This allows investors to participate in digital assets via stock exchange trading without directly purchasing cryptocurrencies.
Thailand approved its first spot Bitcoin ETF for 2024 and is planning similar products for other cryptocurrencies such as Ether and diversified asset baskets. These measures aim to establish Thailand as a crypto hub in Asia and provide a stable, secure environment for digital asset markets within the global financial system.
Source: bitcoinmagazine
