Hong Kong’s markets regulator has moved to rein in listed companies leaning on digital asset treasuries, stepping up oversight while preparing a public education push to warn retail investors about the risks.
Speaking at a media briefing on Tuesday, Securities and Futures Commission chair Kelvin Wong Tin-yau said the agency is tracking how listed firms use cryptocurrencies to manage excess cash or pivot toward digital assets as a core business.
“The SFC is concerned about whether DAT companies’ share prices are traded at a substantial premium above the cost of their DAT holdings,” he said, according to the South China Morning Post.
Hong Kong Firms Face Tighter Scrutiny Over Crypto Treasury Pivots
Wong pointed to cases in the US that “showed that the premium could be very high, which may add risks to investors trading in these stocks”. He added that many Hong Kong retail investors may not fully understand the risks tied to digital asset treasury, or DAT, strategies.
Attention has sharpened after the Hong Kong Exchanges and Clearing reportedly challenged plans from at least five companies seeking to pivot to DAT-focused models as their main business, citing rules that restrict excessive holdings of liquid assets.
The Hong Kong Stock Exchange has pushed back the applications of five firms seeking to pivot to core digital asset treasuries (DAT).#HKEX #DigitalAssetTreasury #BitcoinTreasuryhttps://t.co/3v12b4ged7
— Cryptonews.com (@cryptonews) October 22, 2025
Similar proposals faced resistance in India and Australia, reflecting regulatory unease with listed firms that tether valuations to volatile token balances rather than operating cash flows.
US Examples Show How Crypto Holdings Can Distort Equity Valuations
“The SFC is closely monitoring DAT developments,” Wong said. “We caution investors to fully understand the underlying risks of DAT.” He said the commission will strengthen public awareness and investor education on DAT and its risks.
The push comes as some US-listed companies that hold large pools of Bitcoin have at times traded at notable premiums to the value of their coin holdings, amplifying boom-and-bust cycles for shareholders.
These episodes showed how equity prices can drift away from net asset value when sentiment, leverage and momentum collide, creating an unstable link between a company’s core operations and its crypto balance sheet.
DAT’s appeal is straightforward, treasury managers see liquid tokens as an alternative store of value and a marketing signal to crypto-savvy customers. For listed issuers, however, regulators worry that heavy token exposure can blur disclosures, complicate fair-value accounting and inflate market caps during rallies, then magnify drawdowns during downturns.
Regulators Tighten Rules To Prevent Listed Firms From Mimicking Crypto Funds
Digital asset treasuries have gained traction among a narrow set of US firms and crypto-native businesses. They have been less popular in markets where rules limit listed companies from holding outsized liquid assets or where exchange operators scrutinise business pivots that lack clear operating substance.
India and Australia fit that pattern, with exchanges and regulators taking a conservative line on token-heavy balance sheets.
Hong Kong has courted digital asset activity through a licensing regime and the debut of spot crypto exchange-traded funds, seeking to channel demand into regulated venues.
Officials now appear intent on drawing a bright line between regulated market infrastructure and listed issuers that rely on speculative token holdings to drive valuations.
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