Thailand approves the use of cryptocurrencies in derivatives

Key points:

• Thailand has officially authorized cryptocurrencies to serve as underlying assets for regulated derivatives.
• The SEC will introduce updated licensing rules and requirements for digital asset operators.

The Thai government has approved amendments expanding the list of instruments permitted under the Derivatives Act. Under the new framework, digital currencies can be used as underlying assets for regulated derivative contracts. This effectively recognizes cryptocurrencies as a legitimate investment instrument within Thailand’s capital markets.

Pornanong Budsaratragoon, Secretary-General of the Securities and Exchange Commission of Thailand, said the changes will help foster more balanced market growth. According to her, investors will gain broader opportunities to diversify risk and expand their portfolios.

A Push Toward Legalizing Crypto Derivatives

Earlier, the regulator unveiled a three-year strategy to modernize the country’s financial markets. The plan includes advancing asset tokenization initiatives and launching exchange-traded funds tied to digital assets. These measures signal the government’s intention to integrate crypto instruments into the existing regulatory framework.

The SEC also announced plans to issue additional regulations. Licensing rules will be adjusted to allow digital asset market participants to offer crypto-based derivative products. At the same time, oversight requirements for exchanges and clearing houses will be updated.

Picapen Pratipavanich, founder of infrastructure firm Gather Beyond, noted that the legislative update closes the gap between regulation and market practice. He said the reform could enhance transparency, strengthen hedging mechanisms, and attract large institutional players.

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At the same time, experts caution that without tighter disclosure standards and stronger capital requirements, the expansion could increase systemic risks.

The core objective of the reform is to strike a balance between fostering innovation and protecting investors. If implemented carefully, the changes could strengthen Thailand’s reputation as one of the region’s more progressive crypto jurisdictions.