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Thailand Approves Crypto as Collateral in Derivatives Market

Key Takeaways

  • Thailand approved digital assets as collateral in derivatives markets and moved toward global market standards;
  • Regulators will revise the Derivatives Act to include assets like Bitcoin and carbon credits;
  • Officials see the shift as a major step that supports investor protection and positions Thailand as a regional crypto hub.

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Thailand Approves Crypto as Collateral in Derivatives Market

Thailand has introduced a new policy that allows digital assets to be used as collateral for products in its derivatives and capital markets.

The cabinet accepted a plan from the Finance Ministry that would allow cryptocurrencies and other digital assets to serve as underlying assets.

Local news media, including the Bangkok Post, noted that the decision aims to update the country’s market framework to align with global practices.

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Officials also aim to improve oversight, raise investor protection standards, and build a clearer path for Thailand to grow as a regional center for institutional crypto activity.

The next step falls to the Securities and Exchange Commission (SEC). The agency will revise the Derivatives Act to include the new asset types.

Bitcoin BTC $67,652.96 and carbon credits are on the list, which indicates that the changes apply to several emerging asset categories, not just cryptocurrencies.

Nirun Fuwattananukul, chief executive of Binance $7.68B Thailand, said, "The decision to formally recognize digital assets, including cryptocurrencies and digital tokens <...> reflects a growing understanding that digital assets are no longer merely speculative instruments, but an emerging asset class with the potential to reshape the foundations of capital markets".

He added that it was a “watershed moment” for the country’s capital markets, sending a “strong signal” that Thailand is positioning itself as a “forward-looking leader” in Southeast Asia’s digital economy.

Hong Kong’s Securities and Futures Commission (SFC) recently announced new rules that allow licensed brokers to offer margin financing for digital assets. What do the rules cover? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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