Thailand’s government on Tuesday approved the Finance Ministry’s proposal allowing digital assets to be used as underlying assets in the country’s derivatives and capital markets.

The move aims to modernize Thailand’s derivatives markets in line with international standards, strengthen regulatory oversight and investor protection, and position itself as a regional hub for institutional crypto trading, the Bangkok Post reported.

The country’s Securities and Exchange Commission (SEC) will amend the Derivatives Act to enable these new asset classes, which include Bitcoin (BTC) and carbon credits. 

“The decision to formally recognize digital assets, including cryptocurrencies and digital tokens […] reflects a growing…