Thailand Embraces Cryptocurrency in Regulated Derivatives Market
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Thailand’s Strategic Move to Integrate Cryptocurrency
Thailand is advancing its financial landscape by embracing cryptocurrency, as its Cabinet recently approved significant legislative changes. This approval permits digital assets to underpin regulated derivatives contracts, positioning Thailand alongside other forward-thinking Asian markets that are incorporating crypto-linked financial products.
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On February 10, Thailand’s Cabinet sanctioned a proposal from the Finance Ministry to broaden the scope of assets under the Derivatives Act B.E. 2546 (2003). This amendment authorizes digital assets, including notable cryptocurrencies like Bitcoin, to be used as foundational instruments for futures and options traded on regulated platforms. The Securities and Exchange Commission (SEC) is now tasked with revising the Derivatives Act and drafting necessary regulations to oversee participation, licensing, and supervision effectively.
Enhancing the Financial Ecosystem with Cryptocurrency
The newly revised framework acknowledges digital assets as legitimate underlying assets for derivatives products available on exchanges such as the Thailand Futures Exchange (TFEX). The SEC has announced plans to update derivatives business licenses, allowing digital asset operators to offer crypto-linked contracts while refining supervisory standards for exchanges and clearinghouses.
SEC Secretary-General Pornanong Budsaratragoon emphasized that this expansion aims to fortify the recognition of cryptocurrencies as a viable investment asset class. It also seeks to broaden investor access and enhance risk management tools. In collaboration with TFEX, the SEC plans to develop contract specifications that accommodate the unique volatility and risk attributes of digital assets. Ensuring robust supervisory safeguards and investor protection measures remains a priority as the market continues to evolve.
Beyond cryptocurrencies, the amendment redefines carbon credits, facilitating the launch of physically delivered futures contracts in addition to cash-settled products. This initiative aligns with Thailand’s draft Climate Change Act and its broader objectives for achieving carbon neutrality.
Fostering Institutional Growth and Market Expansion
Thailand’s latest reform builds upon the regulatory framework established in 2018, which introduced comprehensive rules for digital asset businesses. Since then, oversight has expanded to incorporate stricter operational requirements and enhanced investor protection measures, although crypto payments remain prohibited by the central bank.
The SEC’s expansive 2026 capital markets roadmap includes plans to introduce cryptocurrency exchange-traded funds (ETFs), pending necessary legal amendments. Officials have indicated that these ETFs could be launched later this year.
Thailand’s domestic cryptocurrency market has experienced steady growth. By August 2025, the SEC valued the market at approximately $3.19 billion, with average daily trading volumes nearing $95 million. The number of active accounts increased to 230,000, indicating rising participation from retail investors, foreign entities, and domestic institutions.
Industry experts suggest that incorporating cryptocurrency into the derivatives market could enhance liquidity and offer effective hedging tools. However, they caution that capital requirements and disclosure standards must evolve to manage systemic risk effectively.
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