The Securities and Exchange Commission of Thailand has suggested permitting intermediaries to grant everyday investors entry into specific digital asset derivatives available abroad.
Based on the proposal, qualifying instruments must closely mirror crypto derivatives offered domestically, encompassing factors like underlying assets, expiration dates, leverage levels, and settlement techniques.
Furthermore, these instruments need to be listed on a venue utilizing a central clearing counterpart and supervised by an authority affiliated with designated global regulatory or exchange associations.
This public consultation signifies Thailand’s most recent movement toward integrating crypto-associated instruments into its supervised financial markets. The regulator officially classified digital tokens and cryptocurrencies as acceptable derivative underlying assets through a notice on March 5, and is currently conferring with the Thailand Futures Exchange regarding potential contract parameters.
In contrast, cryptocurrency derivatives failing to satisfy these outlined criteria will remain restricted exclusively to institutional participants. The agency noted that large institutions possess better preparation to evaluate and navigate intricate, high-exposure instruments.
Current regulations permit brokers to provide foreign derivatives investments to retail and affluent customers solely when those assets mirror domestic alternatives. The commission explained that international crypto derivatives necessitate customized guidelines since their frameworks and risk degrees differ.
The feedback period will remain active through September 30. The regulatory body refrained from disclosing a launch timeline for the suggested regulatory updates.
Related: Thailand moves closer to Bitcoin, Ether ETFs with draft rules
Originally published at https://cointelegraph.com/news/thailand-sec-retail-overseas-crypto-derivatives?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
