Thailand has quietly taken a big step forward to integrate crypto into its currency markets. The Cabinet has given the green light to allow cryptocurrencies to serve as underlying assets in regulated products such as futures and options. This opens the door to traditional commerce linked to real legal rules and authorized by licensed systems.
Regulators set rules
Based on the reports, the Securities and Exchange Commission of Thailand will then draft the detailed rules. These rules will outline how exchanges should operate, how transactions are cleared, and what types of risk controls companies should have in place.
Stock exchanges and banks will need licenses. Custody standards will be strengthened. Market makers and institutional investors are already talking to local companies about possible listings and clearing setups. Some work will be carried out by trading platforms; other work will be carried out by third parties who manage the settlement.
Tokenized bonds and tax movements
Reports have revealed previous projects that helped pave the way. The government introduced tokenized government bonds, known as G-Tokens, which were offered through licensed digital trading platforms in 2025.
This experiment showed how public debt can remain on a blockchain while being issued under normal law. At the same time, reports indicate that a temporary tax break has been proposed to encourage onshore cryptocurrency trading – a five-year capital gains tax holiday running from 2025 to 2029 for transactions on approved platforms.
Stablecoins such as USDT and USDC have been added to the approved list to facilitate trading and settlement.
Market reaction and institutional interest
The move quickly attracted interest from regional fund managers and some global trading desks, according to market observers. There is talk of creating Bitcoin futures contracts and possibly ETFs linked to regulated contracts.
Trading firms say the main appeal is clearer rules and a legal route to covering exposure. Liquidity providers see an opportunity to offer more tools to investors, and some exchanges have already started developing product designs.
Volatility remains a concern and many firms are hesitant to take large positions until clearing rules are final.
Concerns are being raised over custody, fraud and links to money laundering. Regulators intend to require rigorous KYC checks and strict audit trails.
Leverage levels will likely be limited at first. Margin rules should be strict so that a sudden price change does not reflect on the system.
Many observers point out that introducing cryptocurrencies to regulated markets can help manage these risks – if the rules are enforced.
Featured image from Unsplash, chart from TradingView
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