Thailand has approved a major shift in its capital markets framework after the cabinet endorsed a proposal that allows digital assets to serve as underlying instruments for regulated derivatives and capital market products. The decision expands the scope of the Derivatives Trading Act and places cryptocurrencies and carbon credits within Thailand’s formal financial infrastructure.
The policy aims to align the derivatives market with international standards, strengthen regulatory oversight, and improve investor protection. Authorities also expect the reform to support new investment products and deepen institutional participation.
According to a Bangkok Post report, the cabinet approved the Finance Ministry’s proposal on Feb. 10 to permit cryptocurrencies such as Bitcoin to function as reference assets for futures and options contracts within regulated markets.
A structural shift in capital markets
Nirun Fuwattananukul, chief executive of Binance TH by Gulf Binance, described the reform as a turning point for Thailand’s financial system.
"The move marks 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.
He said the decision reflects recognition that digital assets no longer sit at the margins of finance.
"The decision to formally recognize digital assets, including cryptocurrencies and digital tokens, as reference assets under the Derivatives Trading Act reflects a growing understanding that digital assets are no longer merely speculative instruments, but an emerging asset class with the potential to reshape the foundations of capital markets," he said.
The Securities and Exchange Commission will now draft detailed rules that define how market participants can offer crypto-linked derivatives and how licensing frameworks must change. The regulator will also revise supervisory requirements for brokers, exchanges, and clearing houses.
Regulatory groundwork and investor protections
SEC secretary-general Pornanong Budsaratragoon said the amendment will expand the range of assets allowed within derivatives markets and support broader participation.
"The expansion of permissible goods and variables is designed to support emerging asset classes such as digital assets, allowing them to serve as underlying products in the derivatives market," she said.
She added that the changes will "strengthen the recognition of crypto as an asset class, promote market inclusiveness, enhance portfolio diversification, and improve risk management for investors."
Authorities plan to coordinate with the Thailand Futures Exchange to develop contract specifications tailored to digital assets. The process includes alignment with volatility profiles and operational risks associated with cryptocurrencies.
The SEC has begun reviewing licensing structures so digital asset operators can offer derivatives contracts tied to cryptocurrencies once rules take effect. The regulator also plans to revise derivatives business licenses and ensure clearing infrastructure supports the new products.
Carbon credits join derivatives expansion
The amendments also cover environmental markets. Thailand will reclassify carbon credits as goods instead of variables. This change allows the launch of physically delivered carbon credit futures alongside cash-settled contracts.
Officials say the framework supports long-term climate objectives and aligns with the draft Climate Change Act. The approach integrates environmental finance with the country’s broader capital market development.
Alignment with broader crypto roadmap
The reform connects with the Stock Exchange of Thailand’s 2026 strategy, which includes plans to introduce Bitcoin futures and crypto exchange-traded funds once legal requirements are complete. SEC officials have outlined a roadmap that prioritizes institutional investment tools and tokenization initiatives.
The government has also explored digital asset use cases beyond financial markets. A tourism initiative introduced earlier allows visitors to convert digital assets into local currency through regulated channels after identity verification checks.
Thailand maintains restrictions on crypto payments, and the central bank continues to limit retail usage in everyday transactions. Authorities have paired market integration efforts with enforcement actions and anti-money-laundering measures.
From fringe asset to regulated instrument
The reform follows years of regulatory evolution. Thailand established its crypto framework in 2018 with licensing rules for exchanges and token issuers. Oversight expanded to cover investor protection, disclosure standards, and operational requirements for digital asset businesses.
Nirun said the latest approval sets the foundation for the next phase of development.
"This approval marks an important first step. Following the cabinet's endorsement, the SEC will begin drafting detailed rules, regulatory frameworks, and licensing requirements for crypto derivatives businesses," he said.
He added that Binance TH will work with regulators on a structure that balances innovation with safeguards.
"We are particularly encouraged by the strong emphasis by the Finance Ministry and SEC on investor protection, transparency, and alignment with international standards," he said.
Thailand’s strategy now centers on integrating digital assets into mainstream financial infrastructure rather than treating them as a separate investment category. The shift positions derivatives markets as a bridge between traditional finance and crypto-based instruments. Policymakers expect the framework to support institutional participation while maintaining control over risk and market conduct.
Oleksii Shumak
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