Thailand Approves Cryptocurrencies as Underlying Assets in Derivatives Markets

The Securities and Exchange Commission (SEC) of Thailand has officially moved to expand the scope of the country’s financial markets by approving the use of digital assets as underlying assets for derivatives trading. This regulatory milestone, approved by the Capital Market Supervisory Board, is designed to enhance the competitiveness of the Thai capital market and provide sophisticated investors with more diverse investment vehicles.

Under the new regulations, licensed derivatives exchanges, including the Thailand Futures Exchange (TFEX), are now permitted to develop and list products tied to the value of cryptocurrencies. This initiative aims to provide institutional investors and ultra-high-net-worth individuals with professional tools for hedging risks and speculating on price movements within a regulated framework. The SEC noted that the move aligns with global financial trends where digital assets are increasingly integrated into traditional financial infrastructures.

While the expansion marks a significant step toward financial innovation, the SEC emphasizes that strict oversight will remain in place. Participation is initially limited to professional investors to ensure market stability and protect against the high volatility inherent in the crypto market. This development is expected to boost liquidity in the local digital asset ecosystem and attract further institutional interest in Thailand’s evolving financial landscape.

Source: Thailand approves crypto as underlying assets in derivatives markets