Asia-Pacific Stock Exchanges Tighten Rules on Crypto-Hoarding Companies
Three of Asia-Pacific’s largest stock exchanges are clamping down on companies seeking to transform into crypto hoarding vehicles, also known as digital-asset treasury (DAT) firms, according to a Bloomberg report. The pushback comes amid mounting regulatory scrutiny and growing volatility across the digital-asset market.
HKEX Blocks Digital-Asset Treasury Pivots
As reported by Bloomberg, Hong Kong Exchanges & Clearing Limited (HKEX) has recently challenged the plans of at least five publicly traded firms attempting to pivot toward digital-asset treasury strategies as their core business. The exchange cited listing rules that prohibit companies from holding large portions of liquid assets, such as cryptocurrencies, on their balance sheets.
None of the firms’ proposals have been approved so far. Similar resistance has emerged in India and Australia, posing a major obstacle to the proliferation of crypto accumulation companies in the region.
The regulatory caution comes at a pivotal moment for the market. Bitcoin (BTC), which hit a record US$126,251 on October 6, has gained 18% year-to-date, with much of the surge driven by companies modeled after Michael Saylor’s US$70 billion Bitcoin giant, Strategy. However, Bloomberg notes that as DAT share prices fall and crypto markets cool, enthusiasm is waning. A report from Singapore-based 10X Research estimates that retail investors have already lost US$17 billion through DAT trades.
“The clarity and flexibility of listing regulations directly influence how cleanly a digital-asset treasury model can operate,” said Rick Maeda, a Tokyo-based crypto analyst at Presto Research. “Predictable frameworks attract capital, while restrictive ones slow execution.”
Hong Kong’s ‘Cash Company’ Barrier
Under HKEX rules, firms primarily holding cash or short-term investments can be deemed “cash companies” and risk share suspension. The rule aims to prevent shell entities from exploiting their listed status for fundraising.
According to Simon Hawkins, a partner at Latham & Watkins, any company pursuing a crypto pivot must prove that digital-asset accumulation is integral to its operating business. For now, full-scale transitions into pure crypto treasuries are not permitted for listed firms in Hong Kong.
An HKEX spokesperson told Bloomberg that the exchange’s listing framework ensures all listed entities maintain viable, sustainable, and substantive operations.
India and Australia Restrict DAT Models
In India, the Bombay Stock Exchange (BSE) last month rejected Jetking Infotrain’s attempt to list shares from a preferential allotment after the firm revealed plans to invest part of the proceeds in crypto. Jetking has since appealed the decision.
Meanwhile, the Australian Securities Exchange (ASX) bars listed companies from holding more than 50% of their assets in cash or cash-like instruments. That rule makes adopting a crypto-treasury model “essentially impossible,” said Steve Orenstein, CEO of Locate Technologies, which is relocating its listing to New Zealand’s NZX, where such models are permitted.
An ASX spokesperson clarified that while crypto-treasury models are not outright banned, companies must structure them as exchange-traded funds (ETFs) to comply with listing standards.
Japan Emerges as a Crypto Haven
In contrast, Japan remains the most open Asia-Pacific market for crypto treasuries. Local rules permit firms to retain large cash or crypto reserves, provided proper disclosures are made.
“If a company properly discloses that it is purchasing Bitcoin, it’s difficult to deem such actions unacceptable,” said Hiromi Yamaji, CEO of Japan Exchange Group, during a press conference on September 26.
According to BitcoinTreasuries.net, Japan now hosts 14 listed Bitcoin-holding firms, including Metaplanet, which owns about US$3.3 billion worth of Bitcoin. Metaplanet’s stock surged earlier this year before plunging over 70% since June.
Another Japanese company, Convano, which operates nail salons, announced in August plans to raise ¥434 billion (US$3.7 billion) to buy 21,000 Bitcoin — a sum far exceeding its market capitalization at the time.
MSCI Considers Excluding DATs from Indexes
Even Japan’s DAT-friendly environment is facing scrutiny. MSCI, one of the world’s largest index providers, recently proposed excluding DAT firms from its global indexes, citing similarities to investment funds, which are ineligible for inclusion.
The move follows Metaplanet’s US$1.4 billion equity sale in September, which financed additional Bitcoin purchases. MSCI’s proposed exclusion would apply to firms whose crypto holdings exceed 50% of total assets.
Such a move could deprive DATs of passive fund inflows, potentially undermining their high valuations. “That could kill the premium-to-book argument,” said Japan equity analyst Travis Lundy in a Smartkarma note.
