The Thai government has officially allowed cryptocurrencies to be used as underlying assets for regulated Derivative products in the country.
Thailand gives the green light to crypto-based Derivative contracts.
Allow the use of crypto-based Derivative contracts.
- On February 12th, the Thai government approved several significant amendments to the Derivative Act, allowing digital assets to be used as underlying assets for regulated Derivative products.
This means that Futures Contract , options contracts, or other Derivative products listed on exchanges can be based on price fluctuations of cryptocurrencies like Bitcoin, as well as other digital assets approved by regulatory authorities.
According to published information , the Thai Cabinet has approved a proposal from the Ministry of Finance to expand the scope of eligible assets under the Derivatives Act. Under the new framework, cryptocurrencies and other digital assets will be able to serve as underlying assets for supervised Derivative contracts.
- Pornanong Budsaratragoon, Secretary-General of the Securities and Exchange Commission of Thailand (SEC), stated:
"This development will drive more comprehensive market growth, facilitate portfolio diversification, improve risk management, and expand investment opportunities for a wider range of investor groups."
- The Securities and Exchange Commission of Thailand (SEC) announced it will amend licenses under the new Derivative Act, allowing digital asset operators and financial institutions to legally offer crypto-linked Derivative products.
- This agency will also review the supervisory standards applied to exchanges and clearing houses, to ensure that the risk management system is appropriate for the highly volatile nature of digital assets.
- In addition, the SEC will coordinate with the Thailand Futures Contract Exchange (TFEX) to develop contract parameters such as contract size, margin mechanisms, position limits, and settlement methods, to accurately reflect the level of risk associated with crypto.
- This move is part of the SEC's previously announced three-year Capital market development plan, which includes initiatives on tokenization and the development of crypto ETFs, with the goal of integrating digital assets more deeply into the officially regulated investment ecosystem.
Thailand aims to become a regional crypto hub.
- As reported by Coin68 , Thailand has been gradually bringing crypto into a clearer legal framework over the years, instead of letting the sector operate in a gray area. The country's digital asset management system began to take shape in 2018 with the Emergency Decree on Digital Asset Businesses, granting the Securities and Exchange Commission of Thailand (SEC) the authority to license and supervise exchanges and Token Issuance.
- In the subsequent period, the regulatory body continued to expand its scope of supervision to include investor protection and market behavior.
- Measures implemented include allowing large institutions and investors to invest in Bitcoin ETFs , issuing new regulations for investment funds related to digital assets, and blocking a number of large crypto exchange for failing to obtain licenses.
Recently, the SEC also proposed allowing traditional investment funds to Capital in digital assets, while outlining a roadmap for tokenization and the development of crypto ETFs.
Despite expanding the Vai of crypto, Thailand maintains a cautious stance on the use of digital assets in payments. The central bank continues to prohibit the use of crypto as an official means of payment.
- The cryptocurrency-to-local currency conversion app for tourists, launched in August , requires a strict KYC process and can only be used at government-approved locations. In early January, the government also launched a campaign against illicit money, with crypto included in the tightened regulations aimed at strengthening anti-money laundering (AML) controls.
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