November 03, 2025
By Anjali Kochhar
Hong Kong’s financial regulators are increasing scrutiny of publicly listed companies seeking to hold Bitcoin and other cryptocurrencies as part of their treasury strategy, marking a more cautious stance toward the blending of traditional capital market frameworks and digital asset exposure.
The Hong Kong Stock Exchange (HKEX) has rejected at least five firms that applied to transition into so-called “digital asset treasury” (DAT) companies, entities primarily accumulating cryptocurrencies rather than focusing on their core business activities. These applications were declined amid concerns over regulatory alignment, corporate governance, and the risks of high-volatility assets being held by listed companies.
In a public comment, Wong Tin-yau, Chairman of the Securities and Futures Commission (SFC), warned that the premium associated with DAT status “could disappear within a day,” underscoring the instability of such models if digital asset valuations swing abruptly. With this caution, he emphasized that firms cannot treat crypto exposure as a standalone business model without careful regulatory and risk-management structures in place.
At the heart of the oversight is the question of jurisdiction, disclosure, and systemic risk. Listed companies seeking to hold significant crypto exposure must now navigate ambiguous regulatory territory. Hong Kong currently does not allow listed entities to convert en masse into crypto-holding firms. Because the regulatory framework for crypto treasury activities remains underdeveloped, approvals have been withheld pending clearer governance, valuation models, and market-materiality disclosures.
Industry participants say this hesitancy by regulators sends a clear message: crypto exposure for listed companies is no longer a speculative add-on but a serious strategic decision that demands transparency, risk controls, and investor protections. Corporate treasurers and CFOs evaluating Bitcoin allocations now face a more complex approval path that may include additional disclosure of how crypto holdings affect liquidity, collateralization, and market-risk behaviour.
For global markets, the development reinforces Hong Kong’s desire to position itself as a regulated crypto hub, rather than a Wild West of digital asset adoption. While some jurisdictions may take a more welcoming approach to corporate crypto holdings, Hong Kong appears inclined to emphasize governance, investor protection, and structural integrity-first.
One possible consequence is that companies with ambitions for large crypto-treasury models may turn to jurisdictions with clearer regulatory guidelines, leaving Hong Kong to attract firms that want regulated access without high leverage in digital asset exposure.
In summary, the tightening oversight signals that crypto-holding by listed companies is no longer just a balance sheet novelty. It must now clear the same regulatory hurdles that apply to traditional corporate strategies. For listed firms looking to allocate to Bitcoin, Asia’s major financial center is making it clear that you can do it, but you’ll have to do it right.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
