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 the underlying asset in derivatives and financial markets. The decision reflects the growing recognition that digital assets are evolving beyond speculative instruments into a legitimate asset class capable of reshaping financial markets.
Nirun Fuwattananukul, chief executive 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 told The Bangkok Post.
Under this plan, the Securities and Exchange Commission (SEC) will amend the Derivatives Trading Act to legally recognize digital assets as the reference asset of derivatives contracts.
This expansion allows licensed operators to offer crypto-linked contracts, such as futures and options, under proper supervision.
“The expansion of permissible and flexible assets is designed to support emerging 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 rules and licensing frameworks for derivatives dealers, exchanges, and clearing houses to include crypto-based products. It also cooperates with the Thailand Futures Exchange (TFEX) to finalize contract specifications related to the risk factors and practical use of digital assets in trading.
In addition to cryptocurrencies, the amendments reclassify carbon credits as “assets” rather than “variables,” allowing for the introduction of physically delivered carbon credit futures and cash-based contracts. This initiative is in line with Thailand’s climate change and carbon neutrality goals, as outlined in the climate change framework law.
Thailand 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 that its issuance of rules bitcoin and crypto exchange-traded funds (ETFs), futures trading, and investment products, creating a legal basis for digital assets under the existing derivatives law.
The SEC has mandated crypto ETFs and is now setting operational guidelines covering custody, liquidity, and interactions between asset managers and licensed exchanges.
Investors can allocate up to 4–5% of diversified portfolios to digital assets, with domestic ETFs trading on the Stock Exchange of Thailand, allowing exposure without direct crypto ownership.
Thailand approved its first bitcoin ETF in 2024 and plans to expand to other cryptocurrencies, including ether and various baskets.
