Thailand Securities and Exchange Commission prepares regulatory changes to expand derivatives underlyings to digital assets and carbon credits

The Thailand Securities and Exchange Commission has backed an expansion of the types of permissible goods and variables under the Derivatives Act B.E. 2546 (2003) and is preparing related regulatory frameworks, following Cabinet approval of a Ministry of Finance proposal. The initiative is intended to develop Thailand’s derivatives market in line with international practice while ensuring services operate under an appropriate supervisory framework that mitigates risks and enhances investor protection. The expanded scope is intended to support new forms of underlyings, including digital assets, and to treat carbon credits as goods rather than variables, enabling physically delivered futures contracts alongside cash-settled contracts through the derivatives exchange regulated under the Derivatives Act. Regulatory follow-up will include amending derivatives business licences so digital asset business operators can offer derivatives referencing digital assets, and reviewing the licensing and supervisory requirements for the derivatives exchange and derivatives clearing house to ensure suitability for new underlyings. The SEC will also coordinate with Thailand Futures Exchange Public Company Limited to set contract specifications, particularly for digital asset-referenced derivatives, to align with the products’ risk characteristics and practical market usage.