Thailand’s Securities and Exchange Commission (SEC) is considering rules that would allow intermediaries to give retail investors access to certain digital asset derivatives traded on overseas markets.
Under the proposed framework, eligible products would need to closely resemble crypto derivatives already traded in Thailand. The assessment would cover the underlying assets, maturity, leverage and settlement methods.
The derivatives would also have to trade on an exchange that uses a central counterparty for clearing and is supervised by a regulator affiliated with specified international regulatory or exchange organizations.
Thailand expands regulated crypto derivatives framework
The consultation is the latest move by Thailand to bring crypto-linked products into its regulated capital markets. In a notification dated March 5, the SEC formally designated cryptocurrencies and digital tokens as permissible underlying assets for derivatives.
The regulator is also discussing potential contract specifications with the Thailand Futures Exchange.
Crypto derivatives that do not meet the proposed conditions would be available only to institutional investors. The SEC said institutions are better equipped to evaluate and manage complex, high-risk products.
Current rules allow intermediaries to facilitate overseas derivatives investments for retail and high-net-worth clients only when the products resemble derivatives traded domestically. According to the SEC, overseas crypto derivatives require tailored rules because their structures and risk levels can vary.
The consultation will remain open until Sept. 30. The SEC has not announced an implementation date for the proposed amendments.
