Thailand is advancing plans to formally integrate cryptocurrencies into its local derivatives market, allowing digital assets like Bitcoin and others to serve as underlying instruments for regulated derivatives products such as futures and options.

This move comes as part of a broader effort by the Securities and Exchange Commission (SEC) to align Thailand’s derivatives framework with international standards while maintaining investor protection and risk oversight. Under the latest reform:

• digital assets are recognized as eligible underlying assets under the Derivatives Act, alongside traditional commodities and financial instruments;
• the SEC will draft supporting regulations and adjust licensing to enable crypto-linked derivative contracts on regulated exchanges like the Thailand Futures Exchange (TFEX);

The step is expected to:

• expand institutional access to crypto via regulated products
• deepen market liquidity and risk-management tools
• strengthen Thailand’s position as a regional digital finance hub

This reform follows the government’s approval of the proposal to update the derivatives law, institutionalizing digital assets within mainstream capital markets