Thailand to allow crypto-based derivatives… SEC says it will “broaden inclusion in capital markets”

The Thai government has decided to allow regulated derivatives that use virtual assets (cryptocurrencies) as underlying assets. The move is aimed at integrating digital assets more deeply into the formal capital-market framework.

According to Decrypt on the 12th (local time), Thailand’s cabinet approved amendments to the Derivatives Act, enabling virtual assets to be included as underlying assets for regulated derivatives. As a result, virtual assets are set to gain stronger institutional standing as an investable asset class within Thailand’s capital markets.

Pornanong Budsaratragoon, secretary-general of Thailand’s Securities and Exchange Commission (SEC), said in a statement that “this measure will contribute to more inclusive market growth, investment diversification and efficient risk management,” adding that it “will provide new opportunities to a broader range of investors.”

The Thai SEC plans to draw up follow-on rules and revise licenses so that digital-asset operators can offer crypto-linked derivative contracts. It will also review supervisory requirements for exchanges and clearing houses, and work with the Thailand Futures Exchange (TFEX) to design contract structures suited to the risk profile of virtual assets.

Local industry participants say the overhaul “reflects market realities in the rules.” Pichapen Prateepavanich, founder of infrastructure firm Gather Beyond, said “digital assets have already functioned in practice as financial products,” adding that the change “aligns regulation with market reality.”

He noted that “if designed appropriately, it will help expand hedging tools, improve liquidity and broaden participation by institutional investors,” but cautioned that “systemic risk could increase unless disclosure standards and capital requirements are strengthened at the same time.”

Thailand established its regulatory framework for virtual assets in 2018 by introducing the Emergency Decree on Digital Asset Businesses. It has since expanded oversight through measures including an exchange licensing regime, crackdowns on unlicensed operators, a ban on crypto payments and tighter operating rules. Last year, it allowed stablecoin trading on domestic exchanges.

Earlier this year, the Thai SEC announced a three-year capital-markets plan that includes the development of tokenization and crypto exchange-traded funds (ETFs), signaling a push to accelerate the institutional integration of digital assets.

The latest amendment to the Derivatives Act is seen as an extension of that strategy, as Thailand moves to absorb virtual assets within its regulatory framework and strengthen its position as a regional digital-finance hub.