Thailand has approved amendments to the Derivatives Act, allowing digital assets to be used as collateral for derivatives.

PANews reported on February 12 that, according to Decrypt, the Thai cabinet has approved amendments to the Derivatives Act, allowing digital assets to be used as underlying assets for regulated derivatives, further establishing their status as investment assets within Thailand's formal capital market framework.

Pornanong Budsaratragoon, Secretary General of the Securities and Exchange Commission of Thailand, stated that this move will promote more inclusive market growth, drive portfolio diversification and risk management optimization, and expand investment opportunities for a wider range of investors. The agency will begin drafting supporting rules, revising the scope of derivatives trading licenses, clarifying regulatory requirements for exchanges and clearinghouses, and coordinating with the Thailand Futures Exchange to develop contract standards adapted to the risk characteristics of digital assets.