Written by: Alice French, Richard Henderson, Kiuyan Wong, Yasutaka Tamura
Translation: Joe Zhou, Foresight News
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Hong Kong Exchanges and Clearing Limited (HKEX) has questioned at least five companies planning to transform into DATs (Digital Asset Treasury companies), stating that current regulations prohibit companies from hoarding excessive liquid funds.
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Resistance to DATs has also emerged in India and Australia. Local exchange operators share similar concerns, and these attitudes may stall the plans of many crypto treasury companies.
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Japan is an exception in the Asia-Pacific region. Local listing rules are relatively lenient towards digital asset treasury companies, granting them greater freedom. However, signs of friction are beginning to appear—even MSCI has proposed removing large crypto treasury companies from its global indices.
The three major securities exchanges in the Asia-Pacific region are resisting companies disguised as listed firms whose main business is hoarding cryptocurrencies.
According to informed sources, HKEX has questioned at least five companies in recent months that plan to shift their core business to a digital asset treasury strategy, citing rules that prohibit holding large amounts of liquid assets. So far, none of these companies have received approval. In India and Australia, so-called Digital Asset Treasury companies (DATs) have faced similar resistance.
This resistance targets both cryptocurrencies themselves and the listed company vehicles that focus on hoarding crypto assets, posing risks to the digital asset market, which has been rising for most of 2025.
Bitcoin hit a record high of $126,251 on October 6, up 18% so far this year. This surge has largely been driven by the emergence of numerous companies dedicated to hoarding bitcoin. The model pioneered by bitcoin giant MicroStrategy, led by Michael Saylor and with a market capitalization of $70 billions, has spawned hundreds of imitators worldwide. Most of these companies have a market capitalization exceeding the total value of their crypto holdings, highlighting strong investor demand.
Recently, the pace of purchases by Digital Asset Treasury companies (DATs) has slowed, and their stock prices have declined, in line with the sharp sell-off across the crypto market. According to a recent report by Singapore's 10X Research, retail investors have lost about $17 billions in DAT trades.
In the Asia-Pacific market, concerns from exchange operators may completely block the plans of cryptocurrency hoarders.
"Listing rules directly determine the speed and regulatory standards of the crypto treasury model," said Rick Maeda, a crypto analyst at Tokyo-based Presto Research. He added that if the rules are "predictable and lenient," they can attract capital and boost investor confidence; a stricter environment will slow down the execution of digital asset treasury companies.
"Cash Companies" Among Listed Firms
According to HKEX rules, if a listed company's assets mainly consist of cash or short-term investments, it will be classified as a "Cash Company," and its shares may be suspended from trading. The aim is to prevent shell companies from equating their listed status with money for trading purposes.
Simon Hawkins, a partner at law firm Latham & Watkins, said that for companies intending to hoard cryptocurrencies, approval depends on whether they can "demonstrate that acquiring crypto assets is a core component of their business operations."
According to informed sources, for listed companies in the former British colony, it is currently prohibited to transform into pure crypto hoarding companies.
A spokesperson for HKEX declined to comment on the specific companies it has questioned but stated that its framework "ensures that all companies applying for listing, as well as already listed companies, have viable, sustainable, and substantive businesses and operations."
In a similar case, the Bombay Stock Exchange last month rejected Jetking Infotrain's application for a preferential share listing. The company had stated it would invest part of the raised funds in cryptocurrencies. A filing shows the company is appealing the decision. Both BSE (Bombay Stock Exchange) and Jetking did not respond to requests for comment.
In Australia, the Australian Securities Exchange (ASX Ltd.) prohibits listed companies from allocating 50% or more of their balance sheet funds to cash or cash-like assets. Steve Orenstein, CEO of software company Locate Technologies Ltd., said this provision makes adopting a crypto treasury model "almost impossible." According to a spokesperson, this company, which has transitioned from a software firm to a bitcoin buyer, is currently moving its listing from Australia to New Zealand, where the New Zealand Exchange (NZX Ltd.) is willing to accept Digital Asset Treasury companies (DATs).
A spokesperson for ASX said that if a listed company shifts to investing in bitcoin or ethereum, "it is recommended to consider structuring its investment product as an exchange-traded fund (ETF)." Otherwise, they "are unlikely to be considered suitable for inclusion on the official listing roster."
They stated that ASX does not prohibit the adoption of a crypto treasury strategy, but also warned that potential conflicts with listing rules must be handled with caution.
Japan's "Hoarders"
Japan is a notable exception in the Asia-Pacific region. Locally, it is common for listed companies to hold large amounts of cash, and listing rules are relatively lenient towards Digital Asset Treasury companies (DATs), granting them considerable freedom.
Hiromi Yamaji, CEO of Japan Exchange Group, said at a press conference on September 26: "Once a company is listed, if it makes proper disclosures—for example, disclosing that it is buying bitcoin—it would be quite difficult to immediately deem such actions unacceptable."
According to BitcoinTreasuries.net, Japan has 14 listed bitcoin buyers, the most in Asia. These include hotel company Metaplanet Inc., one of the early adopters of the digital asset treasury model, which currently holds about $3.3 billions in bitcoin. Since it began its transformation at the start of 2024, the company's share price soared to a peak of 1,930 yen in mid-June, but has since fallen by more than 70%.
Japan has also seen some rather bizarre bitcoin purchase plans: Tokyo-based, publicly listed nail salon operator Convano Inc. announced in August that it planned to raise about 434 billion yen ($3 billions) to buy 21,000 bitcoins. At the time, the company's market capitalization was only a fraction of the fundraising amount.
Even for Japan's crypto hoarders, signs of friction are emerging. MSCI, one of the world's largest index providers, recently proposed excluding large Digital Asset Treasury companies (DATs) from its global indices following an investigation into Metaplanet's $1.4 billions international equity offering in September. Metaplanet joined the MSCI Japan Small Cap Index in February this year and stated it would use most of the raised funds to buy bitcoin, later purchasing an additional 10,687 tokens. Metaplanet did not respond to requests for comment.
MSCI stated in an announcement that Digital Asset Treasury companies (DATs) "may exhibit characteristics similar to investment funds" and therefore do not qualify for inclusion in its indices. MSCI recommended banning companies whose crypto assets account for 50% or more of their total assets.
Japanese stock analyst Travis Lundy wrote in a Smartkarma report that if excluded from the indices, Digital Asset Treasury companies (DATs) would no longer enjoy passive capital inflows from funds tracking the index. He added, "This could destroy the argument for their price-to-book premium."
