Thailand's SEC Clears Path for Crypto-Linked Derivatives

Thailand’s Cabinet has approved key changes to expand the types of assets allowed under the country’s Derivatives Act.

Under the new regime, crypto would be permitted to serve as underlying instruments for regulated derivatives products, reinforcing their recognition as an investment asset class within Thailand’s formal capital markets framework.

The regulator said Wednesday it will draft follow-up rules to amend derivatives licenses so digital asset operators can offer crypto-linked contracts, review supervisory requirements for exchanges and clearing houses, and coordinate with Thailand Futures Exchange Public Company Limited (TFEX) on contract specifications aligned with the risk profile of digital assets.

Local observers in conversation with Decrypt said the reform is overdue and largely reflects an effort to bring digital asset activity into a clearer legal framework while preserving safeguards around disclosure and capital standards.

“Digital assets already function as financial instruments in practice,” Pichapen Prateepavanich, policy strategist and founder of infrastructure firm Gather Beyond, told Decrypt.

Expanding the Derivatives Act means the Thai SEC is “aligning regulation with market reality. It moves activity into a clear legal structure,” Prateepavanich added.

“If properly structured, they allow for hedging, better liquidity, and the kind of institutional participation we need. Otherwise, our markets remain thin and reactive as now,” she said.

Still, expanding the scope “without simultaneously strengthening disclosure standards and capital requirements would increase systemic risk,” she noted.

The principle to maintain is that innovation should sit firmly within the rule of law and investor protection, she said, adding that the reform could strengthen Thailand’s position as a serious jurisdiction if executed carefully.

Since then, the regulator has paired stricter cross-border oversight with broader market integration, proposing to allow funds to invest in digital assets and outlining plans that include tokenization and crypto ETFs.