Thailand is moving forward with the inclusion of cryptocurrency in the regulated derivatives market

BlockBeats News, February 12, Thailand is moving forward with integrating cryptocurrency into its regulated derivatives market.

The Thai Securities and Exchange Commission recently announced that it will expand the scope of permitted underlying assets under the derivatives regulatory framework to include digital assets and carbon credits.

This comes shortly after the Thai Cabinet approved a proposal aimed at aligning the Thai derivatives market with international standards while maintaining strong regulatory, risk mitigation, and investor protection measures.

This adjustment by the Thai SEC formally recognizes digital assets (including cryptocurrency) as a legitimate investment asset class eligible to be underlying assets for regulated derivatives. This means that in the future, futures, options, and other contract products pegged to assets like Bitcoin may be launched on platforms such as the Thailand Futures Exchange.

The Thai SEC plans to establish complementary regulatory details, including amending derivative business licenses to allow licensed digital asset operators to offer contract products pegged to digital assets. The regulator will also review the issuance of licenses and regulatory frameworks for derivative exchanges and clearinghouses to accommodate the demand for cryptocurrencies as new types of underlying assets. Additionally, the Thai SEC has stated that it will collaborate with the Thailand Futures Exchange to finalize the specifications of contract products pegged to digital assets to support risk management and real market applications.