The Hong Kong Stock Exchange (HKEX) has reinforced its listing requirements following scrutiny of firms seeking to become digital asset treasuries. The move comes after Bloomberg reported that Asia-Pacific exchanges have resisted approving companies attempting to transform into crypto-holding entities. HKEX clarified that all listing applicants must demonstrate viable, sustainable, and substantive business operations rather than rely on digital asset reserves.
Heightened Oversight on Digital Asset Treasury Models
The rise of Digital Asset Treasuries (DATs) has gained global attention over the past year. These entities often hold large cryptocurrency portfolios instead of running traditional businesses. Several Asian exchanges, including HKEX, have now questioned whether this model aligns with regulatory standards.
According to a recent report, HKEX has challenged at least five firms seeking to pivot toward DAT structures in recent months. None of the applications has been approved so far. Sources familiar with the matter said the exchange questioned each firm’s operational viability, noting that companies holding excessive liquid assets may violate listing rules.
HKEX regulations classify companies that primarily hold cash or short-term investments as “cash companies.” Such entities face the risk of suspension or delisting. The rule aims to prevent shell firms from using their listed status to attract speculative capital.
An HKEX spokesperson reaffirmed the exchange’s position, stating that every listed company must maintain “feasible and substantive” operations. The spokesperson emphasized that sustainable revenue models are key to maintaining market integrity and investor confidence.
The clarification follows concerns that a number of Hong Kong-based public companies were turning their attention to accumulating digital assets. Regulators worry this could blur the line between operating companies and investment funds.
Regional Exchanges Tighten Controls
Across the Asia-Pacific region, major exchanges have taken similar stances. Authorities in India and Australia have also shown reluctance to approve firms that are transitioning into digital-asset-holding entities. The coordinated approach reflects growing skepticism about whether DATs contribute genuine business activity.
According to crypto analysts, this regulatory tightening marks a turning point for digital asset treasury models. Following Bitcoin’s surge to a record high of $126K in early October 2025, many businesses adopted the strategy. During that period, corporate balance sheets increasingly included cryptocurrencies as treasury assets, following strategies pioneered by Strategy.
However, the market correction that followed has raised doubts about the sustainability of such models. Research firm 10X Research estimates that retail investors have lost over $17 billion due to falling DAT valuations.
Rick Maeda, a crypto analyst at Presto Research in Tokyo, said regulatory predictability directly affects how digital asset treasuries operate. “Rules that are clear and consistent help attract capital,” he noted, adding that uncertainty can hinder companies’ ability to execute treasury strategies efficiently.
Japan remains the regional exception. Listed companies in Japan can freely maintain substantial digital asset holdings without violating listing rules. The Japan Exchange Group permits firms to disclose cryptocurrency purchases openly.
During a September press conference, Japan Exchange Group CEO Hiromi Yamaji said, “Once a company discloses it is purchasing Bitcoin, it’s difficult to conclude such actions are unacceptable.”
Japan currently leads the region with 14 listed firms holding Bitcoin, according to BitcoinTreasuries.net. Among them is hotel operator Metaplanet Inc., which owns roughly $3.3 billion worth of Bitcoin. The firm’s stock initially surged before dropping more than 70% from its June 2025 peak.
Even so, the regulatory environment in Japan may tighten. MSCI Inc., a leading index provider, has proposed excluding DAT-heavy firms from its global indexes. The company argues that these businesses resemble investment funds rather than operating entities.
As the digital asset sector matures, exchanges are attempting to strike a balance between innovation and accountability. The stance from HKEX reinforces that corporate adoption of digital assets must come with operational credibility. Its decision highlights the efforts made by regulators to balance innovation with market discipline.