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Thailand’s Securities and Exchange Commission (SEC) is seeking public feedback on changes that would let digital asset business operators apply for derivatives licenses without setting up separate legal entities. The consultation opened on April 20 and runs until May 20.
The proposal is meant to support derivative contracts that use digital assets as underlying assets. It would give investors more tools for hedging and portfolio management while keeping crypto-linked futures inside Thailand’s regulated derivatives market.
Crypto Firms Could Enter Derivatives Faster
The key change is structural. A licensed digital asset operator would be able to seek a derivatives business license within its existing corporate setup, rather than creating a new company just to offer futures-related services.
That could lower the operating barrier for crypto firms that want to expand into derivatives. It also supports the SEC’s plan to supervise those activities under a more unified standard.
Exchanges Would Face Conflict Checks
The SEC is not offering a free pass. If a digital asset exchange applies for a derivatives business license, it would need controls to manage conflicts of interest. The regulator pointed to the risk that an exchange could use client order information for its own benefit or for related parties.
The proposal also includes stronger financial reporting standards for derivatives exchanges and clearing houses. That matters because crypto-linked futures would place new demands on market infrastructure, especially around volatility, margin, clearing and risk management.
The Plan Follows a Cabinet-Backed Expansion
The plan follows a February 10 Cabinet decision backing the expansion of permissible goods and variables under the Derivatives Act to include digital assets as underlying products. The SEC said that change would allow digital assets to serve as underlying products and help recognize digital assets more formally as an investment asset class.
The regulator also said it would coordinate with the Thailand Futures Exchange on contract specifications for digital asset derivatives so products match the risk profile and practical use of the underlying assets. The proposal would expand Thailand’s regulated crypto market by letting licensed digital asset firms apply for derivatives licenses within their current corporate structure.
