Asian exchanges crack down on crypto holders posing as listed companies

Asia’s top three stock markets are tightening listing rules and supervising companies to prevent them from becoming quasi-cryptocurrency investment vehicles.

The move comes as regulators across the region take note of the emerging phenomenon of digital asset treasury (DAT). These companies exist first and foremost to collect and hold cryptocurrencies rather than run traditional businesses.

This growing resistance is key to the industry that contributed to Bitcoin’s meteoric rise in 2025, as publicly traded companies around the world adopted the Bitcoin hoarding strategy pioneered by Michael Saylor’s $70 billion MicroStrategy. The world’s largest digital currency hit an all-time high of $126,251 on October 6, up 18% since the beginning of the year.

But that enthusiasm has waned in recent months. DAT’s stock price has plummeted in tandem with a broader correction in the cryptocurrency market, with retail investors estimated to have lost more than $17 billion, according to 10X Research.

Hong Kong moves to curb digital government debt

Hong Kong Exchange and Clearing Limited (HKEX) has reportedly rejected or challenged at least five companies seeking to transition to digital asset-centric financial models over the past few months, citing listing rules that prohibit them from maintaining large liquidity positions. None of the apps are approved.

Under the exchange’s rules, companies that hold most of their assets in cash or short-term investments are classified as “cash companies,” meaning they could be suspended from trading or delisted. The policy is aimed at preventing shell companies from using their listed status to generate speculative profits.

“Listing regulations have a direct impact on how quickly and how cleanly financial models for digital assets can operate,” said Rick Maeda, a Tokyo-based cryptocurrency analyst at Presto Research. He added that “predictable and accommodative” rules will attract capital and boost investor confidence, while a more stringent environment will hamper DAT’s execution speed.

A Hong Kong Exchange spokesperson said the exchange’s framework allows all listed and applicant companies to maintain “viable and sustainable” business operations.

India and Australia are also following suit.

In India, the Bombay Stock Exchange (BSE) recently rejected JetKing Infotrain’s application to issue new shares through preferential allotment after the company announced plans to invest a portion of its proceeds in crypto assets. The company has appealed this decision, as stated in a regulatory filing.

Australia is taking a similarly cautious stance. The Australian Securities Exchange (ASX) prohibits listed companies from holding more than 50% of their balance sheets in cash or cash-like assets, a rule that effectively blocks the DAT model.

Locate Technologies, the software company that started buying Bitcoin earlier this year, has now moved its listing to New Zealand, and the NZX has shown a more open-minded attitude toward DAT hosting.

An ASX spokesperson said that while crypto treasury strategies are not explicitly prohibited, companies pursuing them should consider structuring their exposure as an exchange-traded fund (ETF) to comply with listing standards.

Japan stands out as the only major market in the Asia-Pacific region where listed companies are free to adopt digital asset treasury strategies. Local regulations allow businesses to maintain large cash reserves, giving them more flexibility to invest in Bitcoin.

Hiromi Yamaji, CEO of Japan Exchange Group, said at a press conference in September that, “Once a company discloses its purchase of Bitcoin, it is difficult to conclude that such behavior is unacceptable.”

Japan currently leads the region with 14 publicly traded Bitcoin-holding companies, according to BitcoinTreasuries.net. Among them is hotel operator Metaplanet, which holds about $3.3 billion in Bitcoin. The company’s stock price soared earlier this year, but has fallen more than 70% from its June high.

However, Japan’s DAT-friendly landscape may be changing. MSCI, one of the world’s largest index providers, proposed that companies that use DAT heavily be removed from its global indexes because they resemble investment funds. The move follows Metaplanet’s sale of $1.4 billion in stock in September, with most of the proceeds going toward buying Bitcoin.

Travis Lundy, a Japanese equity analyst at Smart Karma, warned that if passed, MSCI’s proposal could strip DAT of passive fund inflows and valuation premiums.

Diverse approaches across Asia highlight the continuing regulatory challenge of balancing innovation and investor protection in digital asset management.

Japan’s flexible rules have encouraged experimentation, while Hong Kong, India and Australia have increased oversight to maintain market integrity and avoid excessive speculation.

For now, the DAT model that once symbolized corporate enthusiasm for cryptocurrencies is losing momentum, with regulators warning the market that accumulating digital assets without a sustainable business remains a risky proposition.