Quick Breakdown
- Asian stock exchanges tighten rules against crypto-focused treasury firms.
- Regulators reject “cash company” listings lacking real operations.
- BitMine’s Tom Lee says the DAT boom may have already peaked.
Stock exchanges across India, Hong Kong, and Australia are tightening rules against companies seeking to convert into digital asset treasury vehicles (DATs), signaling growing regulatory resistance to firms using public listings primarily for crypto investment.
JUST IN: 🇮🇳🇭🇰🇦🇺 India, Hong Kong, and Australia’s stock exchanges are blocking listings of companies adopting the crypto treasury (DAT) model – Bloomberg
— Crypto India (@CryptooIndia) October 22, 2025
Exchanges push back against “cash companies”
According to a Bloomberg report, Hong Kong Exchanges & Clearing Ltd. (HKEX) has recently rejected at least five firms applying to become DATs, citing restrictions against “cash companies” — entities that derive most of their value from liquid assets rather than operational businesses. The move follows mounting concern that some listed firms are using the DAT model to hold speculative crypto assets instead of engaging in legitimate operations.
In India, the Bombay Stock Exchange (BSE) reportedly denied a listing application last month after the company disclosed plans to invest its capital directly into digital assets. Similarly, Australia’s ASX enforces a rule preventing listed entities from allocating more than half of their balance sheets to cash-like assets, including cryptocurrencies — a limit that effectively makes the DAT model “impossible,” according to exchange representatives.
Crypto treasury model faces growing skepticism
ASX officials have urged crypto-focused firms to explore exchange-traded fund (ETF) structures instead of pursuing listings as operating companies. Regulators argue that publicly listed firms must demonstrate real commercial activity rather than function as passive investment vehicles.
The crackdown comes amid waning enthusiasm for DATs, which dominated headlines earlier this year as firms sought to leverage Bitcoin and other crypto holdings to boost valuations. However, many DAT-linked stocks are now trading at or below their net asset values following recent market corrections.
Research firm 10x Research said “the age of financial magic is ending for Bitcoin treasury companies,” pointing to steep declines in firms such as Metaplanet, once seen as a poster child for the trend. Even BitMine Chairman Tom Lee acknowledged that the DAT boom “may have already peaked,” confirming that the company has since shifted strategy aggressively accumulating Ether (ETH) following one of the most significant market deleveraging events earlier this month.
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