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South Korea’s Kospi Outpaces Nasdaq’s Dotcom-Era Gains as Japan and South Korea Deepen Energy Ties

By Asian Legal Review Staff | May 19, 2026

South Korea’s stock market has delivered extraordinary returns in just the past 18 months as the Kospi index triples in value, fueled by relentless demand for semiconductors from Samsung Electronics and SK Hynix amid the ongoing global AI boom. In a separate but equally significant development, Japan and South Korea have agreed to expand bilateral energy cooperation, including plans for joint hydrogen projects and deeper LNG trade integration.

## The Kospi’s Triple Surge

According to the latest data from the Financial Times, South Korea’s benchmark Kospi index has outpaced even the dotcom-era gains of the Nasdaq, surging more than 200% over the past 18 months. The rally is primarily driven by the global semiconductor supply chain, with Samsung Electronics and SK Hynix serving as the primary beneficiaries of AI infrastructure buildout.

SK Hynix, in particular, has benefited from being one of the few qualified suppliers of high-bandwidth memory (HBM) chips used in NVIDIA’s AI accelerators. Samsung is similarly expanding production capacity to meet the insatiable demand from hyperscale data centers across Asia, the United States, and Europe.

The FT report notes that the surge has fundamentally rewritten the valuation calculus for Korean equities. For years, South Korea’s market was viewed as a cyclical commodity play driven primarily by electronics exports. Today, the Kospi sits at all-time highs, with P/E ratios for leading semiconductor names trading at premiums not seen since the late 1990s tech boom — and yet the earnings backing those valuations are substantially more robust.

“Korean semiconductors are now irreplaceable in the AI stack,” said a Seoul-based equity strategist quoted by the FT, noting that “without HBM memory, there is no path to competitive AI training systems.”

## Japan-South Korea Energy Pact

On the diplomacy front, Tokyo and Seoul have agreed to deepen energy cooperation — a notable shift given the historical frictions between the two economies. The agreement, discussed against the backdrop of the FT’s coverage of talks on Russia’s Power of Siberia 2 gas pipeline, signals a broader realignment in Northeast Asian energy strategy.

Key elements under discussion include:
– Joint development of green hydrogen production facilities
– Expanded liquefied natural gas (LNG) supply partnerships to reduce dependence on Middle Eastern imports
– Shared investment in next-generation nuclear technology
– Coordinated energy procurement strategies in the context of rising global energy prices

The timing is significant. With oil prices reaching their highest levels since the beginning of the Iran conflict — unleaded petrol in the UK has hit 158.52p per litre — energy security has become a pressing concern across the Asia-Pacific. The Japan-South Korea energy pact represents an effort to pool resources and reduce vulnerability to supply shocks.

## What It Means for Southeast Asia

For Southeast Asian investors, the Korean semiconductor surge has dual implications. On one hand, it underscores the growing centrality of Asia in the global tech economy — a trend that could benefit regional supply chain participants in Malaysia, Vietnam, and the Philippines. On the other hand, the elevated valuations raise questions about sustainability if AI capex trends soften or semiconductor demand normalizes.

The Japan-South Korea energy cooperation could also have ripple effects. A more diversified Northeast Asian energy network could stabilize regional power markets and create new trade opportunities for LNG exporters like Australia and Qatar, who are closely positioned to supply both markets.

## Bottom Line

The triple surge of the Kospi and the deepening Japan-South Korea energy alliance point to a broader reconfiguration of Asian economic power. The region is no longer just a manufacturing base; it is becoming the engine of the global AI economy and a critical node in the world’s energy future.

Sources: Financial Times, Nikkei Asia

Posted on

South Korea’s Kospi Outpaces Nasdaq’s Dotcom-Era Gains as Japan and South Korea Deepen Energy Ties

By Asian Legal Review Staff | May 19, 2026

South Korea’s stock market has delivered extraordinary returns in just the past 18 months as the Kospi index triples in value, fueled by relentless demand for semiconductors from Samsung Electronics and SK Hynix amid the ongoing global AI boom. In a separate but equally significant development, Japan and South Korea have agreed to expand bilateral energy cooperation, including plans for joint hydrogen projects and deeper LNG trade integration.

## The Kospi’s Triple Surge

According to the latest data from the Financial Times, South Korea’s benchmark Kospi index has outpaced even the dotcom-era gains of the Nasdaq, surging more than 200% over the past 18 months. The rally is primarily driven by the global semiconductor supply chain, with Samsung Electronics and SK Hynix serving as the primary beneficiaries of AI infrastructure buildout.

SK Hynix, in particular, has benefited from being one of the few qualified suppliers of high-bandwidth memory (HBM) chips used in NVIDIA’s AI accelerators. Samsung is similarly expanding production capacity to meet the insatiable demand from hyperscale data centers across Asia, the United States, and Europe.

The FT report notes that the surge has fundamentally rewritten the valuation calculus for Korean equities. For years, South Korea’s market was viewed as a cyclical commodity play driven primarily by electronics exports. Today, the Kospi sits at all-time highs, with P/E ratios for leading semiconductor names trading at premiums not seen since the late 1990s tech boom — and yet the earnings backing those valuations are substantially more robust.

“Korean semiconductors are now irreplaceable in the AI stack,” said a Seoul-based equity strategist quoted by the FT, noting that “without HBM memory, there is no path to competitive AI training systems.”

## Japan-South Korea Energy Pact

On the diplomacy front, Tokyo and Seoul have agreed to deepen energy cooperation — a notable shift given the historical frictions between the two economies. The agreement, discussed against the backdrop of the FT’s coverage of talks on Russia’s Power of Siberia 2 gas pipeline, signals a broader realignment in Northeast Asian energy strategy.

Key elements under discussion include:
– Joint development of green hydrogen production facilities
– Expanded liquefied natural gas (LNG) supply partnerships to reduce dependence on Middle Eastern imports
– Shared investment in next-generation nuclear technology
– Coordinated energy procurement strategies in the context of rising global energy prices

The timing is significant. With oil prices reaching their highest levels since the beginning of the Iran conflict — unleaded petrol in the UK has hit 158.52p per litre — energy security has become a pressing concern across the Asia-Pacific. The Japan-South Korea energy pact represents an effort to pool resources and reduce vulnerability to supply shocks.

## What It Means for Southeast Asia

For Southeast Asian investors, the Korean semiconductor surge has dual implications. On one hand, it underscores the growing centrality of Asia in the global tech economy — a trend that could benefit regional supply chain participants in Malaysia, Vietnam, and the Philippines. On the other hand, the elevated valuations raise questions about sustainability if AI capex trends soften or semiconductor demand normalizes.

The Japan-South Korea energy cooperation could also have ripple effects. A more diversified Northeast Asian energy network could stabilize regional power markets and create new trade opportunities for LNG exporters like Australia and Qatar, who are closely positioned to supply both markets.

## Bottom Line

The triple surge of the Kospi and the deepening Japan-South Korea energy alliance point to a broader reconfiguration of Asian economic power. The region is no longer just a manufacturing base; it is becoming the engine of the global AI economy and a critical node in the world’s energy future.

Sources: Financial Times, Nikkei Asia

Posted on

South Korea’s Kospi Outpaces Nasdaq’s Dotcom-Era Gains as Japan and South Korea Deepen Energy Ties

By Asian Legal Review Staff | May 19, 2026

South Korea’s stock market has delivered extraordinary returns in just the past 18 months as the Kospi index triples in value, fueled by relentless demand for semiconductors from Samsung Electronics and SK Hynix amid the ongoing global AI boom. In a separate but equally significant development, Japan and South Korea have agreed to expand bilateral energy cooperation, including plans for joint hydrogen projects and deeper LNG trade integration.

## The Kospi’s Triple Surge

According to the latest data from the Financial Times, South Korea’s benchmark Kospi index has outpaced even the dotcom-era gains of the Nasdaq, surging more than 200% over the past 18 months. The rally is primarily driven by the global semiconductor supply chain, with Samsung Electronics and SK Hynix serving as the primary beneficiaries of AI infrastructure buildout.

SK Hynix, in particular, has benefited from being one of the few qualified suppliers of high-bandwidth memory (HBM) chips used in NVIDIA’s AI accelerators. Samsung is similarly expanding production capacity to meet the insatiable demand from hyperscale data centers across Asia, the United States, and Europe.

The FT report notes that the surge has fundamentally rewritten the valuation calculus for Korean equities. For years, South Korea’s market was viewed as a cyclical commodity play driven primarily by electronics exports. Today, the Kospi sits at all-time highs, with P/E ratios for leading semiconductor names trading at premiums not seen since the late 1990s tech boom — and yet the earnings backing those valuations are substantially more robust.

“Korean semiconductors are now irreplaceable in the AI stack,” said a Seoul-based equity strategist quoted by the FT, noting that “without HBM memory, there is no path to competitive AI training systems.”

## Japan-South Korea Energy Pact

On the diplomacy front, Tokyo and Seoul have agreed to deepen energy cooperation — a notable shift given the historical frictions between the two economies. The agreement, discussed against the backdrop of the FT’s coverage of talks on Russia’s Power of Siberia 2 gas pipeline, signals a broader realignment in Northeast Asian energy strategy.

Key elements under discussion include:
– Joint development of green hydrogen production facilities
– Expanded liquefied natural gas (LNG) supply partnerships to reduce dependence on Middle Eastern imports
– Shared investment in next-generation nuclear technology
– Coordinated energy procurement strategies in the context of rising global energy prices

The timing is significant. With oil prices reaching their highest levels since the beginning of the Iran conflict — unleaded petrol in the UK has hit 158.52p per litre — energy security has become a pressing concern across the Asia-Pacific. The Japan-South Korea energy pact represents an effort to pool resources and reduce vulnerability to supply shocks.

## What It Means for Southeast Asia

For Southeast Asian investors, the Korean semiconductor surge has dual implications. On one hand, it underscores the growing centrality of Asia in the global tech economy — a trend that could benefit regional supply chain participants in Malaysia, Vietnam, and the Philippines. On the other hand, the elevated valuations raise questions about sustainability if AI capex trends soften or semiconductor demand normalizes.

The Japan-South Korea energy cooperation could also have ripple effects. A more diversified Northeast Asian energy network could stabilize regional power markets and create new trade opportunities for LNG exporters like Australia and Qatar, who are closely positioned to supply both markets.

## Bottom Line

The triple surge of the Kospi and the deepening Japan-South Korea energy alliance point to a broader reconfiguration of Asian economic power. The region is no longer just a manufacturing base; it is becoming the engine of the global AI economy and a critical node in the world’s energy future.

Sources: Financial Times, Nikkei Asia

Posted on

South Korea’s Kospi Outpaces Nasdaq’s Dotcom-Era Gains as Japan and South Korea Deepen Energy Ties

By Asian Legal Review Staff | May 19, 2026

South Korea’s stock market has delivered extraordinary returns in just the past 18 months as the Kospi index triples in value, fueled by relentless demand for semiconductors from Samsung Electronics and SK Hynix amid the ongoing global AI boom. In a separate but equally significant development, Japan and South Korea have agreed to expand bilateral energy cooperation, including plans for joint hydrogen projects and deeper LNG trade integration.

## The Kospi’s Triple Surge

According to the latest data from the Financial Times, South Korea’s benchmark Kospi index has outpaced even the dotcom-era gains of the Nasdaq, surging more than 200% over the past 18 months. The rally is primarily driven by the global semiconductor supply chain, with Samsung Electronics and SK Hynix serving as the primary beneficiaries of AI infrastructure buildout.

SK Hynix, in particular, has benefited from being one of the few qualified suppliers of high-bandwidth memory (HBM) chips used in NVIDIA’s AI accelerators. Samsung is similarly expanding production capacity to meet the insatiable demand from hyperscale data centers across Asia, the United States, and Europe.

The FT report notes that the surge has fundamentally rewritten the valuation calculus for Korean equities. For years, South Korea’s market was viewed as a cyclical commodity play driven primarily by electronics exports. Today, the Kospi sits at all-time highs, with P/E ratios for leading semiconductor names trading at premiums not seen since the late 1990s tech boom — and yet the earnings backing those valuations are substantially more robust.

“Korean semiconductors are now irreplaceable in the AI stack,” said a Seoul-based equity strategist quoted by the FT, noting that “without HBM memory, there is no path to competitive AI training systems.”

## Japan-South Korea Energy Pact

On the diplomacy front, Tokyo and Seoul have agreed to deepen energy cooperation — a notable shift given the historical frictions between the two economies. The agreement, discussed against the backdrop of the FT’s coverage of talks on Russia’s Power of Siberia 2 gas pipeline, signals a broader realignment in Northeast Asian energy strategy.

Key elements under discussion include:
– Joint development of green hydrogen production facilities
– Expanded liquefied natural gas (LNG) supply partnerships to reduce dependence on Middle Eastern imports
– Shared investment in next-generation nuclear technology
– Coordinated energy procurement strategies in the context of rising global energy prices

The timing is significant. With oil prices reaching their highest levels since the beginning of the Iran conflict — unleaded petrol in the UK has hit 158.52p per litre — energy security has become a pressing concern across the Asia-Pacific. The Japan-South Korea energy pact represents an effort to pool resources and reduce vulnerability to supply shocks.

## What It Means for Southeast Asia

For Southeast Asian investors, the Korean semiconductor surge has dual implications. On one hand, it underscores the growing centrality of Asia in the global tech economy — a trend that could benefit regional supply chain participants in Malaysia, Vietnam, and the Philippines. On the other hand, the elevated valuations raise questions about sustainability if AI capex trends soften or semiconductor demand normalizes.

The Japan-South Korea energy cooperation could also have ripple effects. A more diversified Northeast Asian energy network could stabilize regional power markets and create new trade opportunities for LNG exporters like Australia and Qatar, who are closely positioned to supply both markets.

## Bottom Line

The triple surge of the Kospi and the deepening Japan-South Korea energy alliance point to a broader reconfiguration of Asian economic power. The region is no longer just a manufacturing base; it is becoming the engine of the global AI economy and a critical node in the world’s energy future.

Sources: Financial Times, Nikkei Asia

Posted on

South Korea’s Kospi Outpaces Nasdaq’s Dotcom-Era Gains as Japan and South Korea Deepen Energy Ties

By Asian Legal Review Staff | May 19, 2026

South Korea’s stock market has delivered extraordinary returns in just the past 18 months as the Kospi index triples in value, fueled by relentless demand for semiconductors from Samsung Electronics and SK Hynix amid the ongoing global AI boom. In a separate but equally significant development, Japan and South Korea have agreed to expand bilateral energy cooperation, including plans for joint hydrogen projects and deeper LNG trade integration.

## The Kospi’s Triple Surge

According to the latest data from the Financial Times, South Korea’s benchmark Kospi index has outpaced even the dotcom-era gains of the Nasdaq, surging more than 200% over the past 18 months. The rally is primarily driven by the global semiconductor supply chain, with Samsung Electronics and SK Hynix serving as the primary beneficiaries of AI infrastructure buildout.

SK Hynix, in particular, has benefited from being one of the few qualified suppliers of high-bandwidth memory (HBM) chips used in NVIDIA’s AI accelerators. Samsung is similarly expanding production capacity to meet the insatiable demand from hyperscale data centers across Asia, the United States, and Europe.

The FT report notes that the surge has fundamentally rewritten the valuation calculus for Korean equities. For years, South Korea’s market was viewed as a cyclical commodity play driven primarily by electronics exports. Today, the Kospi sits at all-time highs, with P/E ratios for leading semiconductor names trading at premiums not seen since the late 1990s tech boom — and yet the earnings backing those valuations are substantially more robust.

“Korean semiconductors are now irreplaceable in the AI stack,” said a Seoul-based equity strategist quoted by the FT, noting that “without HBM memory, there is no path to competitive AI training systems.”

## Japan-South Korea Energy Pact

On the diplomacy front, Tokyo and Seoul have agreed to deepen energy cooperation — a notable shift given the historical frictions between the two economies. The agreement, discussed against the backdrop of the FT’s coverage of talks on Russia’s Power of Siberia 2 gas pipeline, signals a broader realignment in Northeast Asian energy strategy.

Key elements under discussion include:
– Joint development of green hydrogen production facilities
– Expanded liquefied natural gas (LNG) supply partnerships to reduce dependence on Middle Eastern imports
– Shared investment in next-generation nuclear technology
– Coordinated energy procurement strategies in the context of rising global energy prices

The timing is significant. With oil prices reaching their highest levels since the beginning of the Iran conflict — unleaded petrol in the UK has hit 158.52p per litre — energy security has become a pressing concern across the Asia-Pacific. The Japan-South Korea energy pact represents an effort to pool resources and reduce vulnerability to supply shocks.

## What It Means for Southeast Asia

For Southeast Asian investors, the Korean semiconductor surge has dual implications. On one hand, it underscores the growing centrality of Asia in the global tech economy — a trend that could benefit regional supply chain participants in Malaysia, Vietnam, and the Philippines. On the other hand, the elevated valuations raise questions about sustainability if AI capex trends soften or semiconductor demand normalizes.

The Japan-South Korea energy cooperation could also have ripple effects. A more diversified Northeast Asian energy network could stabilize regional power markets and create new trade opportunities for LNG exporters like Australia and Qatar, who are closely positioned to supply both markets.

## Bottom Line

The triple surge of the Kospi and the deepening Japan-South Korea energy alliance point to a broader reconfiguration of Asian economic power. The region is no longer just a manufacturing base; it is becoming the engine of the global AI economy and a critical node in the world’s energy future.

Sources: Financial Times, Nikkei Asia

Posted on

Thailand SEC Proposes Overhaul of Digital Asset Derivatives Licensing Framework

The Securities and Exchange Commission of Thailand (SEC) has proposed a significant overhaul of the regulatory framework governing digital asset derivatives trading, introducing what amounts to the most market-expanding reform to date for the country’s crypto ecosystem.

The most consequential change in the proposed revisions is the introduction of a direct licensing pathway, permitting existing digital asset operators to apply for derivatives business licenses without the administrative burden of establishing separate corporate entities. Under the current framework, operators wishing to offer derivatives products were required to spin up entirely new companies, a costly and time-consuming requirement that effectively slowed market maturation.

The SEC’s stated objectives are twofold: accelerating the formal recognition of digital assets as a legitimate asset class within Thailand’s traditional financial regulatory taxonomy, and providing market participants with advanced risk management tools. The commission notes that the revision aims to promote the recognition of digital assets as an asset class and provide investors with additional hedging tools.

However, the liberalized access is accompanied by heightened compliance demands. The proposed rules require operators to implement robust conflict-of-interest prevention mechanisms, and introduce elevated financial standards for both derivatives trading centers and clearing institutions. The public consultation window runs until May 20, 2026, with the SEC inviting stakeholder feedback on the revised licensing requirements.

Strategically, this development positions Thailand ahead of several regional peers in the derivatives space. Singapore has yet to fully liberalize derivatives access for existing Digital Payment Token Service Providers, while Malaysia’s derivatives framework for digital assets remains narrower in scope. If enacted, Thailand’s approach would lower barriers for established platforms such as Bitkub and Zipmex to diversify into regulated derivatives products, potentially driving significant institutional liquidity to the Bangkok market as neighboring jurisdictions including Hong Kong and South Korea develop their own digital asset derivatives infrastructure.

The move comes at a pivotal moment for Thailand’s digital asset sector, which has been pursuing a strategy of regulatory proactivity since the country first approved cryptocurrency ETF frameworks earlier this year. The derivatives reform, paired with the crypto ETF sandbox and the TouristDigiPay regulatory sandbox, signals a deliberate multi-track approach to positioning Thailand as the region’s most crypto-friendly capital market.

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South Korea’s Kospi Outpaces Nasdaq’s Dotcom-Era Gains as Japan and South Korea Deepen Energy Ties

By Asian Legal Review Staff | May 19, 2026

South Korea’s stock market has delivered extraordinary returns in just the past 18 months as the Kospi index triples in value, fueled by relentless demand for semiconductors from Samsung Electronics and SK Hynix amid the ongoing global AI boom. In a separate but equally significant development, Japan and South Korea have agreed to expand bilateral energy cooperation, including plans for joint hydrogen projects and deeper LNG trade integration.

The Kospi’s Triple Surge

According to the latest data from the Financial Times, South Korea’s benchmark Kospi index has outpaced even the dotcom-era gains of the Nasdaq, surging more than 200% over the past 18 months. The rally is primarily driven by the global semiconductor supply chain, with Samsung Electronics and SK Hynix serving as the primary beneficiaries of AI infrastructure buildout.

SK Hynix, in particular, has benefited from being one of the few qualified suppliers of high-bandwidth memory (HBM) chips used in NVIDIA’s AI accelerators. Samsung is similarly expanding production capacity to meet the insatiable demand from hyperscale data centers across Asia, the United States, and Europe.

The FT report notes that the surge has fundamentally rewritten the valuation calculus for Korean equities. For years, South Korea’s market was viewed as a cyclical commodity play driven primarily by electronics exports. Today, the Kospi sits at all-time highs, with P/E ratios for leading semiconductor names trading at premiums not seen since the late 1990s tech boom — and yet the earnings backing those valuations are substantially more robust.

“Korean semiconductors are now irreplaceable in the AI stack,” said a Seoul-based equity strategist quoted by the FT, noting that “without HBM memory, there is no path to competitive AI training systems.”

Japan-South Korea Energy Pact

On the diplomacy front, Tokyo and Seoul have agreed to deepen energy cooperation — a notable shift given the historical frictions between the two economies. The agreement, discussed against the backdrop of the FT’s coverage of talks on Russia’s Power of Siberia 2 gas pipeline, signals a broader realignment in Northeast Asian energy strategy.

Key elements under discussion include:

The timing is significant. With oil prices reaching their highest levels since the beginning of the Iran conflict — unleaded petrol in the UK has hit 158.52p per litre — energy security has become a pressing concern across the Asia-Pacific. The Japan-South Korea energy pact represents an effort to pool resources and reduce vulnerability to supply shocks.

What It Means for Southeast Asia

For Southeast Asian investors, the Korean semiconductor surge has dual implications. On one hand, it underscores the growing centrality of Asia in the global tech economy — a trend that could benefit regional supply chain participants in Malaysia, Vietnam, and the Philippines. On the other hand, the elevated valuations raise questions about sustainability if AI capex trends soften or semiconductor demand normalizes.

The Japan-South Korea energy cooperation could also have ripple effects. A more diversified Northeast Asian energy network could stabilize regional power markets and create new trade opportunities for LNG exporters like Australia and Qatar, who are closely positioned to supply both markets.

Bottom Line

The triple surge of the Kospi and the deepening Japan-South Korea energy alliance point to a broader reconfiguration of Asian economic power. The region is no longer just a manufacturing base; it is becoming the engine of the global AI economy and a critical node in the world’s energy future.

Sources: Financial Times, Nikkei Asia

Posted on

Indonesia Reverses: Oil and Gas Exempted from Danantara Single-Gate Export Centralization

The Indonesian government announced Thursday that the upstream oil and gas sector will be exempted from the controversial single-gate export centralization policy, a significant reversal that underscores the political economy’s sensitivity in a capital-intensive industry reliant on foreign investment.

Energy and Mineral Resources Minister Bahlil Lahadalia told delegates at the 2026 Indonesian Petroleum Association Convention and Exhibition in BSD City that the regulation under PP No. 21/2026 will not apply to upstream oil and gas operations. “I bring a special message from the President: the regulation does not apply to the upstream oil and gas sector. So, there is no need to worry, it’s business as usual,” he said.

Under a separate concession, Bahlil also confirmed that oil and gas exporters face different deposit rules than other exporters. Forex retention in the sector will be capped at 10 to 30 percent, reflecting heavy reliance on foreign financing.

The exemptions come days after President Prabowo announced on May 20 that key commodity exports — crude palm oil, coal, and ferroalloys — would be channeled through a single state-owned enterprise, PT Danantara Sumberdaya Indonesia (DSI). The government aims to prevent under-invoicing and transfer pricing fraud, which officials said could be costing the state up to US$150 billion annually.

During a June-to-September trial phase, exporting firms will still conduct direct transactions with buyers, but DSI handles export filing. From January 2027, DSI takes full control of export contracts, shipments, and payments. A later phase will expand the list to all strategic natural resource commodities.

The policy has drawn business pushback. The Indonesian Coal Mining Association warned that existing contracts, permits, and shipping schedules complicate any abrupt shift, while industry groups fear a de facto monopoly that could undermine buyer confidence a…

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Thailand SEC Proposes Streamlined Crypto Derivatives Licensing for Existing Firms

Thailand’s Securities and Exchange Commission (SEC) has proposed a sweeping reform that would allow existing licensed digital asset operators to apply directly for derivatives licenses under their current corporate structures, eliminating the need to establish separate entities for cryptocurrency derivatives activity.

The proposal builds on Cabinet approval reached in February 2026, which formally recognized cryptocurrencies including Bitcoin as eligible underlying assets for futures and options under Thailand’s Derivatives Act. The SEC opened a public consultation window to gather industry feedback on the rule changes before the consultation closes on May 20, 2026.

Under current regulations, digital asset firms must set up geographically and structurally separate corporate entities dedicated solely to derivatives trading — a requirement that has been cited by market participants as a significant barrier to product innovation and market entry. The proposal would consolidate licensing under a single regulatory umbrella, allowing licensed crypto exchanges to offer spot and derivatives products through their existing structures while maintaining strict oversight through mandatory internal controls, risk management protocols, and conflict-of-interest safeguards.

The move positions Thailand as the first jurisdiction in Southeast Asia to offer integrated crypto spot and derivatives licensing in a single framework. It comes as the country already benefits from a five-year capital gains tax exemption on cryptocurrency trading (2025-2029) and is preparing for the launch of cryptocurrency ETFs. Deputy Secretary-General Jomkwan Kongsakul has previously highlighted ease of access as a key advantage of opening Thailand’s derivatives market to digital asset participants.

Industry players are actively positioning themselves ahead of the new rules several licensed digital asset operators have recently acquired regulated trading …

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Indonesia Reverses: Oil and Gas Exempted from Danantara Single-Gate Export Centralization

The Indonesian government announced Thursday that the upstream oil and gas sector will be exempted from the controversial single-gate export centralization policy, a significant reversal that underscores the political economy’s sensitivity in a capital-intensive industry reliant on foreign investment.

Energy and Mineral Resources Minister Bahlil Lahadalia told delegates at the 2026 Indonesian Petroleum Association Convention and Exhibition in BSD City that the regulation under PP No. 21/2026 will not apply to upstream oil and gas operations. “I bring a special message from the President: the regulation does not apply to the upstream oil and gas sector. So, there is no need to worry, it’s business as usual,” he said.

Under a separate concession, Bahlil also confirmed that oil and gas exporters face different deposit rules than other exporters. Forex retention in the sector will be capped at 10 to 30 percent, reflecting heavy reliance on foreign financing.

The exemptions come days after President Prabowo announced on May 20 that key commodity exports — crude palm oil, coal, and ferroalloys — would be channeled through a single state-owned enterprise, PT Danantara Sumberdaya Indonesia (DSI). The government aims to prevent under-invoicing and transfer pricing fraud, which officials said could be costing the state up to US$150 billion annually.

During a June-to-September trial phase, exporting firms will still conduct direct transactions with buyers, but DSI handles export filing. From January 2027, DSI takes full control of export contracts, shipments, and payments. A later phase will expand the list to all strategic natural resource commodities.

The policy has drawn business pushback. The Indonesian Coal Mining Association warned that existing contracts, permits, and shipping schedules complicate any abrupt shift, while industry groups fear a de facto monopoly that could undermine buyer confidence a…