Asian Stock Exchanges Tighten Rules on Crypto Treasury Firms Amid Volatility Concerns

Major Asian stock exchanges, including Hong Kong Exchanges & Clearing (HKEX), Bombay Stock Exchange, and the Australian Securities Exchange, are cracking down on companies attempting to pivot into digital-asset treasury (DAT) models, especially those holding excessive amounts of Bitcoin or liquid crypto assets. HKEX has rejected at least five such company applications recently, emphasizing that firms must demonstrate viable and sustainable core businesses with crypto integrated as a fundamental part of operations rather than mere treasury holdings. This regulatory push aims to prevent market exposure to severe volatility risks and aligns with policies in India and Australia that restrict firms from holding large liquid or cash-like assets, effectively limiting crypto treasury strategies. The crackdown follows significant retail investor losses estimated at $17 billion from digital-asset treasury trades and growing concerns about the sustainability and credibility of crypto accumulation strategies. Industry experts argue that while accumulation of digital assets is noted, the focus should be on the leadership’s understanding and strategic use of crypto assets to build meaningful projects rather than simple token hoarding. Overall, the stringent regulatory environment challenges the popular corporate crypto treasury model pioneered by Michael Saylor’s Strategy Inc., which holds substantial Bitcoin reserves but faces increasing scrutiny and market pressures amid crypto market corrections.