Thailand’s Securities and Exchange Commission (SEC) has given the go-ahead to the first Bitcoin futures trading service being offered in the country by a securities company.
As per the Bangkok Post, the country’s market regulators declared that Bitcoin (BTC/USD) futures trading was legitimate and well within the bounds of existing rules, but advised investors to adopt a cautious approach, owing to high risks.
Bitcoin futures products were released by CME and CBOE in mid-December last year.
The SEC issued its statement after receiving multiple inquiries in regards to trading, and confirmed that Thai securities companies may offer the products “since the markets are under the supervision of the International Organization of Securities Commissions (IOSCO), with which Thailand has an agreement to exchange data.”
Phillip Securities Thailand will be the first to start offering Thai traders access to the product, through an international global derivatives trading service.
Low See Kiong, managing director at Phillip Securities Thailand, stated that there were many Thai investors interested in Bitcoin. He went on to clarify that Bitcoin futures are meant for experienced investors who are interested in Bitcoin but unwilling to purchase it through websites or brokers who do not have securities licenses.
“Using Bitcoin as an underlying asset on the CBOE and CME will lead to greater acceptance of Bitcoin futures as they have reliable payment systems and are regulated by the US Securities and Exchange Commission,” he said.
Apisak Vongvanij, head of global markets at Phillip Securities Thailand, explained the offering further, stating that interested customers will need to apply for the global derivatives service being offered by the company, which will enable them to trade futures on 15 global futures markets (including CME and CBOE). All investors will be required to back up their investment margins with initial deposits, and all trading will be conducted in US dollars.
The opening of Bitcoin futures trading in Thailand comes directly after a crackdown on cryptocurrencies in China. Once poised to become a global leader in the cryptocurrency market, China is working toward bringing cryptocurrency trading and mining in the country to a halt, while other Asian nations are looking to bring digital currencies under regulatory control.
Thailand currently has one cryptocurrency exchange, but its allowance of Bitcoin futures trading indicates that the cryptocurrency market might find stronger footing in the country.