The Hong Kong Stock Exchange (HKEX) has stepped up regulatory scrutiny regarding companies interested in transitioning to core crypto treasuries or Digital Asset Treasuries (DAT). This decision reflects a growing concern about compliance with existing regulations that limit substantial liquid asset holdings. Reports from Bloomberg indicate that at least five companies have come under the microscope, highlighting the exchange’s commitment to maintaining robust financial practices in the evolving cryptocurrency space.
In an essential update, the HKEX has reiterated its expectations from listing applicants, emphasizing that they must conduct “viable and sustainable” business operations. Under the current regulatory framework, any company looking to pivot to a DAT model must demonstrate that integrating cryptocurrency is a fundamental part of its business plan. This highlights the stock exchange’s insistence on discouraging excessive liquid asset holdings, which could weaken the stability and predictability of the market.
Simon Hawkins, a partner at the law firm Latham & Watkins, explained the stringent approval process for companies seeking to accumulate significant crypto assets. According to Hawkins, success hinges on a company’s ability to prove that acquiring cryptocurrency aligns seamlessly with its operational strategies. This approach seeks to ensure that businesses aren’t merely hoarding assets but are genuinely integrating them into their growth narratives.
The concept of Digital Asset Treasuries (DAT) emerged relatively recently in 2020 when Michael Saylor, CEO of MicroStrategy—now rebranded simply as Strategy—announced a pioneering move in capital allocation via an SEC filing. His bold decision to incorporate Bitcoin as a key asset marked a pivotal moment in the crypto landscape, setting a precedent for other companies to follow. Today, as of September 2025, the numbers are striking, with 178 listed companies collectively holding almost 990,000 Bitcoins, a value that hovers around $107 billion, primarily led by Strategy.
The increasing interest from various companies in amassing large cryptocurrency reserves raises significant questions about institutional maturity. Is this merely a short-lived trend, or does it indicate a deeper, more profound assimilation of cryptocurrency into mainstream business practices? As firms strive to build their crypto treasuries, the credibility of their overall strategies and operational frameworks is gaining attention. Kevin de Patoul, CEO of the global crypto investment firm Keyrock, emphasizes that it’s essential for companies to demonstrate a coherent understanding of the crypto ecosystem rather than focus solely on accumulation.
De Patoul articulates that the narrative shouldn’t be restricted to the quantities of Bitcoin or Ethereum held. Instead, it must consider the leadership’s background and the genuine understanding of the technology and market dynamics behind it. “It’s one thing to raise capital and buy tokens; it’s another to utilize that capital effectively in building meaningful projects,” he states. This perspective highlights the importance of a strong vision and strategic focus over mere token accumulation.
The HKEX’s heightened scrutiny is not an isolated incident; it aligns with a broader trend of regulatory tightening across various countries, including India and Australia. For instance, the Bombay Stock Exchange recently rejected Jetking Infotrain’s application, which aimed to make significant investments in cryptocurrency. This move underscored the regulatory vacuum in India surrounding DAT firms, which remains a concern for many in the sector.
Additionally, Australia’s exchange (ASX) has imposed restrictions, preventing listed companies from holding more than 50% of their balance sheets in “cash-like” assets. These regulatory measures effectively complicate the adoption of a crypto treasury model for firms, leading executives like Steve Orenstein, CEO of Locate Technologies Ltd., to argue that such policies make it nearly impossible for companies to engage in crypto accumulation legitimately.
