In a sharp regulatory turn, several of the Asia-Pacific region’s major stock exchanges are pushing back against companies attempting to pivot into digital-asset treasury (DAT) models, firms whose primary business is hoarding cryptocurrencies.
According to recent reporting, Hong Kong Exchanges & Clearing Ltd. (HKEX) has challenged at least five firms in recent months over business-model shifts that involve accumulating large crypto reserves.
Under HKEX listing rules, a company must maintain “viable, sustainable and substantive” operations; simply acting as a vehicle to hold highly liquid digital assets does not meet this standard.
The concerns reflect broader hesitancy across the region. Exchanges in India and Australia have also signalled resistance to public firms using cryptocurrencies as primary treasury assets.
Digital Asset Treasury Models Under Scrutiny
The DAT model, popularised by U.S. firms such as MicroStrategy Incorporated, which hold substantial bitcoin reserves, has gained traction among listed companies seeking crypto exposure through their balance sheets. In Asia alone, data suggests more than 130 public companies have adopted such strategies, holding tens of thousands of BTC.
Now, the regulation is forcing a re-evaluation. Analysts warn that tighter listing scrutiny and potential exclusion from major indices could reduce institutional demand for firms pursuing crypto hoarding strategies.
Potential Shifts and Future Outlook
With this backdrop, companies pursuing significant crypto exposure may now pivot toward regulated ETF structures or relocate to friendlier markets willing to accommodate treasury-style models.
This regulatory pivot signals a maturing crypto-corporate landscape, where holding digital assets is no longer enough. For listed companies in Asia, the era of unbridled crypto treasury accumulation may be coming to a close.