Thai Government Greenlight Digital Assets for Derivatives Market Trading
In a strategic move to become a regional cryptocurrency hub, Thailand has authorized the use of Bitcoin and other digital assets in derivatives trading, with a focus on institutional market participants.
On Tuesday, the Thai government gave its approval to a proposal put forward by the Finance Ministry that permits digital assets to serve as underlying assets within the nation's derivatives and capital market infrastructure.
According to a report from the Bangkok Post, this strategic initiative is designed to bring Thailand's derivatives markets up to international standards through modernization, enhance regulatory oversight mechanisms and investor protection frameworks, and establish the country as a leading regional center for institutional cryptocurrency trading activities.
The nation's Securities and Exchange Commission (SEC) has been tasked with amending the Derivatives Act to accommodate these newly approved asset categories, which encompass Bitcoin (BTC) as well as carbon credits.
The decision to formally recognize digital assets, including cryptocurrencies and digital tokens [...] 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
Nirun Fuwattananukul, chief executive of Binance Thailand
Fuwattananukul further described the development as a "watershed moment" for Thailand's capital markets, characterizing it as a "strong signal" that demonstrates the country's commitment to establishing itself as a "forward-looking leader" within the digital economy landscape of Southeast Asia.
Strengthening crypto recognition for investors
As Thailand broadens its cryptocurrency initiatives, the nation is specifically targeting affluent institutional investors as its primary audience. This strategic direction is also in harmony with plans announced by the Stock Exchange of Thailand for 2026, which include the launch of Bitcoin futures contracts and exchange-traded products.
According to SEC secretary-general Pornanong Budsaratragoon, the initiative will "strengthen the recognition of crypto as an asset class, promote market inclusiveness, enhance portfolio diversification, and improve risk management for investors."
Still no crypto payments in Thailand
Within Thailand, retail trading activity continues to thrive, with Bitkub, the Kingdom's largest cryptocurrency exchange platform, recording daily trading volumes reaching $65 million, as reported by CoinMarketCap data.
Nevertheless, the central bank continues to prohibit the use of cryptocurrency for payment transactions, and consumer access to stablecoins remains under restriction.
In August, the government introduced a mobile application designed for short-term tourists that enables them to exchange crypto holdings into local currency, though users are required to complete rigorous Know Your Customer (KYC) protocols and customer due diligence verification processes, with spending permissions limited exclusively to government-approved merchant outlets.
In January, Thailand initiated a comprehensive campaign directed at what authorities term "gray money," with cryptocurrency being identified as a key focus area within broader efforts to combat money laundering activities.