Hong Kong, India, and Australia curb listings of digital asset treasuries as regulators raise shell company concerns; Japan remains a rare exception
Asia’s leading stock exchanges are stepping up restrictions on digital asset treasuries (DATs) — publicly listed firms that hold large crypto reserves — amid mounting regulatory unease over their structure and transparency.
According to industry insiders, Hong Kong Exchanges & Clearing Ltd. (HKEX) has rejected multiple applications from companies seeking to rebrand as crypto treasuries. Regulators cited existing policies against “cash companies,” defined as entities that derive value primarily from liquid assets like cryptocurrencies rather than from operational revenue.
In India, the Bombay Stock Exchange (BSE) reportedly denied a recent listing after a company disclosed plans to allocate most of its proceeds toward digital assets. Similarly, the Australian Securities Exchange (ASX) has reiterated that companies cannot hold more than half of their balance sheet in cash-like assets, including crypto, making the DAT model effectively unworkable under current rules.
An ASX spokesperson said exchanges prefer that “firms seeking crypto exposure explore regulated instruments such as exchange-traded funds (ETFs) instead of transforming into asset-holding entities.”
Despite regional tightening, Japan stands out as the notable exception. Its exchanges permit DAT listings provided they meet disclosure requirements. The country now hosts 14 listed Bitcoin-holding firms, including Metaplanet, Asia’s largest DAT. However, global index provider MSCI is reportedly weighing a proposal to exclude companies with over 50% crypto exposure from its benchmarks, a move that could restrict institutional investment.
Experts say the regulatory clampdown reflects growing anxiety over the “shell company effect” — firms using their listed status primarily to attract speculative capital. “Regulators want assurance that listed entities represent genuine operating businesses, not passive investment vehicles,” said a Hong Kong-based market analyst.
The pullback comes as DAT share prices have fallen sharply in recent months, many trading below their net asset value following crypto’s broader correction. Analysts at 10x Research noted that “the age of easy valuations for crypto treasuries appears to be ending,” signaling a shift toward tighter governance and greater accountability in the digital asset market.
The evolving regulatory stance suggests Asia’s next wave of crypto exposure will likely move through ETFs and licensed funds rather than balance sheet-driven treasury models.
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.