Hong Kong, India, and Australia tighten oversight on companies seeking to hold large crypto reserves as Japan remains open to digital asset strategies
Major stock exchanges across the Asia-Pacific (APAC) region are tightening scrutiny of Digital Asset Treasury (DAT) strategies, signaling growing regulatory caution toward listed firms accumulating large cryptocurrency holdings. According to recent reports, Hong Kong Exchanges and Clearing (HKEX) has challenged at least five companies over plans to convert substantial portions of their assets into crypto.
The pushback stems from existing exchange rules that restrict companies from becoming “cash companies,” or entities primarily holding liquid assets without active business operations. Industry sources say that regulators fear crypto-heavy balance sheets could blur the line between operating firms and investment shells, potentially exposing investors to volatility and compliance risks.
“Exchanges want to ensure listed entities remain operating businesses — not vehicles for speculative crypto exposure,” explained a Hong Kong-based market analyst familiar with the matter.
In India, the Bombay Stock Exchange (BSE) recently rejected a listing proposal from Jetking Infotrain after the company revealed intentions to invest part of its proceeds in cryptocurrencies. Meanwhile, Australia’s Securities Exchange (ASX) has imposed limits preventing listed firms from holding more than 50% of their balance sheets in digital or cash-like assets.
Steve Orenstein, CEO of Locate Technologies, said that due to such constraints, his firm — which holds 12.3 BTC (approximately $1.33 million) — is considering shifting its listing to the New Zealand Exchange (NZX) to maintain operational flexibility.
The moves highlight a sharp divergence in regulatory approaches across Asia. While Hong Kong, India, and Australia adopt restrictive stances, Japan remains a notable outlier. The Japan Exchange Group (JPX) permits DAT strategies provided companies maintain transparency about their holdings.
“Once a company is listed, if it makes appropriate disclosures — such as announcing Bitcoin purchases — it would be difficult to conclude such actions are unacceptable,” said Hiromi Yamaji, CEO of JPX, during a press briefing in September.
The growing friction reflects the region’s struggle to balance innovation and investor protection as more firms look to emulate the playbooks of Bitcoin-holding corporates like MicroStrategy and Metaplanet.
As regulatory attitudes harden, experts believe that Japan’s permissive model could attract more crypto-treasury listings, positioning Tokyo as a potential hub for Asia’s digital asset balance sheet revolution.
Analysts say the divide underscores an emerging truth: while APAC remains at the forefront of financial innovation, regulators are determined to ensure the crypto frontier does not compromise market integrity.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.