Thailand's Securities and Exchange Commission (SEC) has proposed a framework to allow intermediaries to facilitate retail access to digital asset derivatives traded on overseas exchanges.
Under the proposal, eligible products must meet several criteria. They need to resemble crypto derivatives already traded in Thailand in terms of underlying assets, maturity dates, leverage levels, and settlement methods. Additionally, the products must trade on exchanges that use central counterparties for clearing and are overseen by regulators belonging to specified international regulatory or exchange groups.
The move represents Thailand's ongoing effort to integrate crypto-linked products into its regulated capital markets. In March, the SEC formally designated cryptocurrencies and digital tokens as permissible derivatives underlyings, and the regulator is currently discussing potential contract specifications with the Thailand Futures Exchange.
Crypto derivatives that do not meet the proposed conditions would be restricted to institutional investors only. The SEC stated that institutions possess greater capability to assess and manage complex, high-risk products.
The regulator noted that existing rules already allow intermediaries to facilitate overseas derivatives investments for retail and high-net-worth clients when products resemble those traded domestically. However, overseas crypto derivatives require tailored rules due to their varying structures and risk profiles.
The SEC consultation period remains open until September 30. The regulator has not announced an implementation date for the proposed amendments.
