Thailand is taking a big step towards integrating digital assets into its regulated financial markets.
The country’s cabinet recently approved a proposal that allows digital assets, including cryptocurrencies and tokens, to be used as underlying assets in derivatives and capital markets. The decision reflects a growing recognition that digital assets are evolving beyond speculative instruments into a legitimate asset class capable of reshaping capital markets.
Nirun Fuwattananukul, CEO of Binance Thailand, described the move as a “watershed moment” for the country’s capital markets. “It sends a strong signal that Thailand is positioning itself as a forward-looking leader in Southeast Asia’s digital economy,” he said. Bangkok Post.
Under the plan, the Securities and Exchange Commission (SEC) will amend the Derivatives Trading Act to formally recognize digital assets as reference assets for derivative contracts.
This expansion allows licensed operators to offer contracts linked to crypto, such as futures and options, under appropriate regulatory oversight.
“The expansion of permitted items and variables is designed to support new asset classes such as digital assets,” said SEC Secretary General Pornanong Budsaratragoon. “This will strengthen the recognition of crypto as an asset class, improve portfolio diversification and improve risk management for investors.”
The SEC is developing detailed regulations and licensing frameworks for derivatives brokers, exchanges and clearing houses to accommodate crypto-based products. It is also working with the Thailand Futures Exchange (TFEX) to finalize contract specifications that align with the risk characteristics and practical uses of digital assets in trading.
In addition to cryptocurrencies, the changes reclassify carbon credits as “commodities” rather than “variables”, allowing the launch of physically delivered carbon credit futures alongside cash-settled contracts. This initiative is in line with Thailand’s climate change and carbon neutrality goals, as outlined in the draft Climate Change Act.
Thailand’s bitcoin ETF push
Thailand recently completed a major regulatory framework aimed at positioning itself as a bitcoin hub in Asia. The country’s SEC said its rollout rules for bitcoin and crypto exchange-traded funds (ETFs), futures trading and tokenized investment products, creating a formal legal basis for digital assets under existing derivatives laws.
The SEC approved crypto ETFs in principle and is now setting operational guidelines covering custody, liquidity and cooperation between asset managers and licensed exchanges.
Investors could allocate up to 4-5% of diversified portfolios to digital assets, with domestic ETFs traded on the stock exchange in Thailand, allowing exposure without direct crypto ownership.
Thailand approved its first spot bitcoin ETF in 2024 and plans to expand to other cryptocurrencies, including ether and diversified baskets.