Hong Kong’s securities regulator is stepping up oversight of listed companies managing digital asset treasuries, amid rising concern over investor risks linked to such holdings. According to the South China Morning Post, Securities and Futures Commission (SFC) chairman Kelvin Wong Tin-yau said the agency is examining how firms handle digital assets as part of their corporate treasuries.
Wong explained that the SFC is closely tracking companies whose share prices trade at substantial premiums above the value of their digital asset holdings. He warned that such pricing trends, seen previously in the United States, could expose investors to unnecessary market risks.
Moreover, Wong noted that many retail investors may not fully understand the complexities and risks tied to digital asset treasuries. He urged investors to be cautious and said the regulator would intensify education initiatives to improve awareness about potential pitfalls in this emerging area.
Hong Kong Weighs Need for Regulatory Framework
At present, Hong Kong lacks specific regulations governing how listed firms manage their digital asset treasuries. Local outlet Wenweipo reported that the SFC is evaluating whether new guidelines are needed to strengthen oversight and enhance market transparency.
Additionally, the Hong Kong Stock Exchange has reportedly challenged plans by several firms aiming to shift their core businesses toward digital asset treasury models. The exchange cited existing rules that restrict large liquid holdings, reflecting broader caution among financial authorities.
Wong emphasized that while innovation remains welcome, investor protection and market integrity must remain priorities. He said the SFC’s review seeks to balance these goals while keeping pace with global developments in corporate digital asset management.
As the study continues, market participants anticipate clearer guidance that could set standards for disclosure, valuation, and governance practices. Such measures may shape how Hong Kong-listed companies approach digital asset strategies in the future and determine the city’s position as a regional hub for compliant crypto-related business activity.