Asian exchanges push back on Bitcoin treasuries
Three major Asia‑Pacific venues (Hong Kong’s HKEX, India’s BSE and Australia’s ASX) signal that turning listed companies into crypto hoarding vehicles clashes with their listing expectations.
According to Bloomberg, in recent months HKEX has pressed at least five issuers that sought to pivot towards a Digital Asset Treasury (DAT) model i.e., holding Bitcoin reserves on the balance sheet. Similar messages are coming from India and Australia. Local regulators and exchanges are reluctant to admit “cash‑box” structures whose main value is liquid digital assets rather than an operating business.
The skepticism stems from three practical issues.
First, a clash with the spirit of listing rules. A public company is expected to be an operating enterprise, not a quasi‑investment fund. If a volatile asset dominates the balance sheet, shareholders receive exposure to the Bitcoin price rather than a stream of operating profit.
Second, investor protection and benchmark stability. Major benchmark providers are considering excluding issuers whose crypto holdings exceed 50% of total assets. That prevents broad benchmarks from becoming a one‑asset bet and limits passive flows into such stocks.
Third, regulation and transparency. There is no single rulebook for crypto assets: accounting, tax and risk controls differ across jurisdictions and standards. Exchanges are wary when a treasury strategy substitutes for a business strategy, making company announcements potential triggers for sharp price swings. Governance also suffers if management effectively becomes a balance‑sheet trader.
This is not a war on Bitcoin, but an attempt to keep public markets from turning into showcases for companies whose value depends mostly on a single asset. DAT‑style issuers are not barred, but they must demonstrate that Bitcoin reserves are a tool within a coherent operating model – not a replacement for it. Where there is a resilient business, clear risk policy and candid disclosure, markets have fewer reasons to dislike digital volatility.
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