Thailand Proposes Regulated Crypto Access to Global Derivatives

Thailand’s Securities and Exchange Commission (SEC) has proposed new rules that would allow intermediaries to provide retail investors with access to certain digital asset derivatives traded in overseas markets.

Under the proposal, eligible products would need to closely resemble crypto derivatives available in Thailand. This would include similarities in areas such as the underlying assets, maturity, leverage and settlement methods. The products would also have to be traded on exchanges that use a central counterparty for clearing and are supervised by regulators affiliated with specified international regulatory or exchange organizations.

Thailand moves to rxpand regulated crypto derivatives

The consultation represents another step in Thailand’s efforts to integrate crypto-related financial products into its regulated capital markets. The SEC formally recognized cryptocurrencies and digital tokens as permissible underlying assets for derivatives in a notification dated March 5.

The regulator is also discussing possible contract specifications with the Thailand Futures Exchange. Current rules already allow intermediaries to provide retail and high-net-worth investors with access to overseas derivatives when those products are comparable to derivatives traded in Thailand.

Higher-risk products would remain limited to institutions

Under the proposed framework, crypto derivatives that do not satisfy the eligibility requirements would only be available to institutional investors. The SEC said institutional investors are better positioned to evaluate and manage products involving greater levels of complexity and risk.

The regulator also noted that overseas crypto derivatives require specific rules because their structures and risk profiles can vary significantly from products available in the domestic market.

SEC consultation runs until Sept. 30

The SEC has opened the proposed amendments for public consultation, with interested parties able to submit comments until Sept. 30. The regulator has not yet provided a date for when the proposed rules could take effect if they are ultimately approved.

Sources:

https://cointelegraph.com/news/thailand-sec-retail-overseas-crypto-derivatives

https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=13264