Thailand SEC Proposes Letting Retail Investors Trade Overseas Crypto Derivatives

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Thailand’s Securities and Exchange Commission has proposed allowing retail investors to trade certain overseas cryptocurrency derivatives through local intermediaries.

Cointelegraph reported on September 1 that the Thai SEC published draft rule changes that would allow brokers to offer retail clients access to specific foreign digital-asset derivatives.

Under the proposal, eligible products must be similar to crypto derivatives traded in Thailand in terms of the underlying asset, maturity, leverage and settlement method. Exchanges listing those products must also have a central clearing system and be supervised either by an international regulator or by a regulator that is part of an exchange association.

The proposal is the latest step in Thailand’s broader effort to bring crypto-linked products into regulated capital markets. On March 5, the Thai SEC formally approved cryptocurrencies and digital tokens as eligible underlying assets for derivatives and is discussing contract details with Thailand Futures Exchange.

Overseas crypto derivatives that do not meet the proposed requirements could be offered only to institutional investors. The Thai SEC said institutional investors are better equipped to assess and manage complex, higher-risk products.

The public consultation will run through September 30. The Thai SEC did not specify when the revised rules would take effect.