Thailand Expands Derivatives Act to Include Crypto Assets
- Thailand’s Cabinet approved changes allowing crypto as underlying instruments for regulated derivatives.
- The country’s SEC will revise licenses and set contract rules with Thailand Futures Exchange Public Company Limited (TFEX).
- Local experts warn that weak safeguards could increase systemic risk despite overdue reforms.
- This move is part of a three-year plan including tokenization and crypto ETFs.
The recent approval by Thailand’s Cabinet allows digital assets to back derivatives, marking a significant step in integrating crypto into the formal capital markets framework. This change aims to promote market growth, diversification, and effective risk management while expanding investment opportunities.
By aligning regulation with market realities, the Thai SEC aims to create a clear legal structure for digital asset activity while maintaining investor protection standards. However, experts caution that without stronger disclosure standards and capital requirements, systemic risks could rise. (Source)
