Quick Breakdown
- Hong Kong’s SFC to introduce rules for firms holding crypto as treasury assets.
- The move targets speculative trading and enhances investor protection.
- Part of broader efforts to regulate institutional crypto exposure in Hong Kong.
Hong Kong’s Securities and Futures Commission (SFC) is preparing to issue new guidelines for listed companies seeking to operate as Digital Asset Treasuries (DATs) — a growing trend in global markets as firms turn to cryptocurrencies for corporate reserves. The move follows reports that the Hong Kong Exchanges and Clearing (HKEX) has questioned at least five companies proposing to pivot toward digital asset holding models, none of which have received approval.
Hong Kong has stated that it has raised objections to the digital asset treasury (DAT) transformation plans of at least five companies, none of which have received listing approval. Hong Kong currently prohibits listed companies from transforming into pure cryptocurrency…
— Wu Blockchain (@WuBlockchain) October 30, 2025
Oversight needed as firms eye digital asset holdings
According to SFC Chairman Huang Tianyou, while digital assets have become an emerging asset class, Hong Kong currently lacks regulations governing listed firms’ involvement in cryptocurrency investments. Huang noted that some companies have expressed interest in holding large portions of their balance sheet in crypto, similar to the DAT model popularized in the U.S., where firms allocate treasury funds into Bitcoin or other tokens.
Huang warned that such conversions often lead to inflated valuations disconnected from underlying business fundamentals.
“In the U.S., companies that purchase $1 billion worth of crypto sometimes see their market value rise by twice that amount — a trend regulators are now reassessing,”
he said.
Investor caution and market education
The SFC emphasized that investor education and market transparency will be central to upcoming reforms. Huang urged retail investors to understand the risks of companies transitioning into DAT structures, noting that speculative premiums could “disappear overnight” if future regulations tighten.
Currently, Hong Kong bans firms from listing solely as digital asset holders, and Huang confirmed that new DAT-related IPOs are unlikely to gain approval under existing rules. However, the SFC will study whether formal guidance is needed for companies investing in crypto assets like Bitcoin as part of their treasury management.
In a related move, the Hong Kong Legislative Council has issued a special bulletin outlining new policy directions in digital finance, highlighting the rising prominence of stablecoins, including those backed by China’s renminbi (RMB), a signal of the city’s broader strategy to integrate digital assets into its financial system.
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