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Thailand SEC Proposes Easier Derivatives Licensing for Crypto Firms

Highlights:

  • Thailand will let crypto firms apply for derivatives licenses without setting up new companies.
  • The SEC is planning to expand crypto futures while enforcing strict rules in Thailand.
  • The proposal will lower costs and allow more licensed crypto firms to enter derivatives trading.

Thailand’s Securities and Exchange Commission (SEC) has opened a public consultation to change how crypto firms access derivatives licenses in the country. The regulator proposes allowing licensed digital asset companies in Thailand to apply for derivatives licenses within their existing entities.

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Currently, Thai law requires these firms to create separate companies before offering derivatives services. This requirement has increased operational costs and delayed market entry for licensed crypto businesses.

The proposed rule removes this requirement to allow firms to expand derivatives services faster and at lower cost. Licensed crypto firms will operate derivatives activities under one regulatory structure instead of multiple entities. This change will reduce setup time and simplify compliance processes for market participants. As a result, the SEC expects more licensed firms in Thailand to enter the derivatives market.

The SEC will require firms to implement strict internal controls to manage operational risks. These rules include systems that prevent conflicts of interest within the same business structure. Firms must also follow stronger compliance and reporting standards under the new framework. These measures ensure that expanded access does not weaken regulatory supervision.

The consultation period for the new rules will run until May 20. The SEC will review all responses before finalizing the new derivatives licensing rules.

Thailand SEC Expands Crypto Futures Framework with New Rules

The Thailand SEC is building this proposal on earlier legal changes that support crypto derivatives trading in Thailand. In February, authorities approved amendments to the Derivatives Act that recognized digital assets as valid underlying assets for futures contracts. This legal change allowed exchanges and clearing houses in Thailand to prepare crypto-linked derivatives products under regulated conditions.

The current proposal allows licensed crypto firms to apply for derivatives licenses without creating separate companies. The SEC aims to increase participation in the derivatives market by lowering structural entry barriers. At the same time, the regulator wants investors in Thailand to access tools that help manage price risks. These tools include derivative products designed for hedging and portfolio management.

The SEC is also working with the Thailand Futures Exchange to design crypto futures contracts that reflect price volatility. These contracts will account for the risk levels seen in digital asset markets. This coordination ensures that new products match real trading conditions and risk exposure.

Thailand Move Comes as Crypto Derivatives Grow Globally

Thailand introduced this proposal as crypto derivatives trading expands across global markets and platforms. Exchanges are launching new products that allow investors to access leveraged trading opportunities.

Kraken and Coinbase launched perpetual futures linked to equities for users outside the United States. These products allow continuous trading across crypto and traditional financial assets. They show how exchanges are expanding multi-asset trading services globally.

In the U.S., the CFTC is reviewing rules to allow crypto perpetual futures trading. Michael Selig said the agency could move forward with these products within a short timeframe.

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