Stock exchanges across India, Hong Kong, and Australia are tightening restrictions on companies seeking to operate as digital asset treasury (DAT) vehicles, a move that could reshape the landscape for publicly listed crypto investment firms.
According to a Bloomberg report on Wednesday, Hong Kong Exchanges & Clearing Ltd. (HKEX) has already rejected at least five companies attempting to register as DATs. It cites concerns that they resemble “cash companies,” firms that primarily hold liquid assets rather than run real operating businesses.
Similarly, the Bombay Stock Exchange (BSE) in India recently rejected a listing application from a company after it revealed plans to use raised capital to invest in cryptocurrencies. Meanwhile, Australia’s ASX has implemented stringent balance sheet requirements that effectively block the DAT model. The exchange prevents companies from holding more than half of their assets in cash-like holdings, including crypto.
“Companies wishing to focus on digital assets are encouraged to consider structuring their offering as an exchange-traded fund (ETF) instead,” an ASX spokesperson said.
Japan Emerges as an Outlier in Crypto Acceptance
While several major exchanges in Asia are cracking down on crypto treasury listings, Japan has taken a more open stance. Japanese exchanges allow DATs, provided they meet strict disclosure standards. The country currently hosts 14 listed Bitcoin buyers, including Metaplanet, the world’s fourth-largest DAT by Bitcoin holdings.
However, international headwinds may be forming. MSCI, one of the world’s leading index providers, is reportedly proposing to exclude large DATs from its global indexes. Such a move could severely limit access to passive investment flows, cutting off a major source of capital for these firms.
Market regulators have expressed concern that some companies are selling their listed status rather than operating genuine businesses. Exchanges fear that entities holding mostly liquid assets could function as empty shell companies, potentially vulnerable to misuse or financial misconduct.
The DAT Model Faces a Reckoning
The digital asset treasury model, once a major driver of crypto market enthusiasm, now appears to be under pressure. Researchers at 10x Research warned that “the age of financial magic is ending for Bitcoin treasury companies,” pointing to slumping valuations across the sector.
Even BitMine chair Tom Lee recently admitted that the DAT bubble may have burst, as many of these firms now trade at or below their net asset value (NAV) amid a broader market correction.
As regulators tighten oversight and investors lose confidence, the once-booming trend of listed crypto treasuries could be nearing its end.