The Hong Kong Exchanges and Clearing (HKEX) has enforced listing rules since October 2023 that restrict companies from shifting to pure digital asset treasury (DAT) models, preventing entities from primarily holding crypto assets. This move aims to maintain substantive business operations and uphold market integrity, potentially pressuring listed firms to unwind crypto holdings to comply.
According to reports, HKEX rejected at least five companies seeking to become DATs, citing long-established "cash company" rules that target firms holding mostly liquid assets. Similarly, India's Bombay Stock Exchange (BSE) rejected a listing application last month from a company planning to invest in crypto, while Australia's ASX bars companies from holding more than half of their balance sheets in crypto-like assets, making DAT models "essentially impossible."
In contrast, Japan remains an outlier, allowing DATs with proper disclosure and hosting 14 listed Bitcoin buyers, including Metaplanet, the world's fourth-largest Bitcoin DAT. However, MSCI, a major index provider, is proposing to exclude large DATs with over 50% crypto holdings from its indexes, which could cut off passive investment flows.
This regulatory crackdown reflects broader scrutiny over digital assets, with exchanges expressing concerns about companies selling "listed status" rather than running legitimate operations. A HKEX spokesperson emphasized that the framework ensures "viable, sustainable, and substantive business operations" for all listed entities. The enforcement could indirectly impact crypto asset demand, as DATs have driven markets but are now trading below net asset values amid heavy corrections.
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