Ethereum Updates: Regulatory Ambiguity Pauses Huajian’s $410 Million Ethereum Initiative
- Huajian Medical suspends $410M Ethereum purchase plan due to shareholder approval delays and Hong Kong's crypto regulatory caution. - SFC warns of DAT structure risks, citing volatility and lack of legal framework for listed companies' crypto holdings. - Company shifts to blockchain/AI integration for asset valuation, reflecting broader corporate crypto exploration amid regulatory hurdles. - Ethereum's 12.84% 30-day price drop highlights risks of blockchain securitization under evolving Hong Kong oversig
Huajian Medical Holdings Limited has put a hold on its $410 million plan to acquire
This pause underscores the difficulties businesses encounter when dealing with Hong Kong's stringent regulatory stance on crypto investments. The Hong Kong Securities and Futures Commission (SFC) has specifically prohibited companies from listing as Digital Asset Treasuries (DATs)—a model where firms hold significant reserves in cryptocurrencies such as
According to the Coincu report, Huajian Medical's recent shift toward blockchain and AI integration represents a notable change in direction for the company, which has traditionally specialized in medical technology and diagnostics. The firm intends to develop an AI-driven platform to improve the precision of asset valuations and boost transparency in its securitization activities, as mentioned by the Weex report. Analysts believe this strategy is part of a larger movement among established companies to explore blockchain, though regulatory challenges remain significant, Coincu added.
Fluctuations in Ethereum’s value further complicate the scenario. The cryptocurrency has increased by 1.17% over the past day but dropped 12.84% in the last month, with a trading price of $3,900.92 as of November 2, 2025, according to Coincu. The Coincu research team also pointed out that Huajian’s decision to pause the acquisition highlights the inherent risks of tokenizing real-world assets on blockchain, especially as regulatory oversight continues to evolve.
The SFC has indicated that it may introduce new regulations to close gaps in crypto oversight, though there are currently no defined limits on how much cryptocurrency listed companies can hold, as stated in the TradingView report. At the same time, the regulator is reassessing Hong Kong’s dual-class share structure to better support technology companies while ensuring protection for minority investors, according to the same TradingView analysis.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Washington fueled the Bitcoin bubble, Peter Schiff says
Arthur Hayes, Bitwise exec still bullish as Bitcoin falls under $100K
Bitcoin price 21% dip ‘normal’ as accumulator wallets buy 50K BTC in day
How token burns affect price, and when they don’t