Asia’s top three stock markets are tightening their listing rules and supervising companies to ensure they don’t become quasi–crypto investment vehicles.
The move comes as regulators across the region are catching on to an emergent phenomenon of Digital Asset Treasuries (DATs). These firms exist, first and foremost, to collect and hold cryptocurrencies rather than run traditional businesses.
The gathering resistance represents a pivot for an industry that contributed to the surge of Bitcoin in 2025. The world’s largest digital currency reached a record $126,251 on Oct. 6, its historical high and an 18% year-to-date gain, as public companies around the world adopted Bitcoin-hoarding tactics pioneered by Michael Saylor’s $70 billion MicroStrategy Inc.
However, enthusiasm has waned in recent months. DAT share prices have fallen sharply in tandem with a broader crypto market correction, with retail investors estimated to have lost more than $17 billion, according to 10X Research.
Hong Kong moves to rein in digital treasuries
Hong Kong Exchanges & Clearing Ltd. (HKEX) has reportedly either rejected or challenged at least five firms seeking to transition into treasury models centered on digital assets over the past few months, citing listing rules that prohibit maintaining a large liquid position of holdings. None of the apps has been approved.
A rule of the exchange classifies companies with majority assets in cash or short-term investments as “cash companies,” which may be suspended or delisted. The policy aims to discourage shell companies from exploiting their listed status to generate speculative gains.
“Listing regulations directly shape how fast and how cleanly a digital-asset treasury model can operate,” said Rick Maeda, a Tokyo-based crypto analyst at Presto Research. Rules that are “predictable and accommodative” attract capital and boost investor confidence, while harsher environments hinder DATs’ execution speed, he added.
An HKEX spokesperson stated that the exchange’s framework ensures all listed and applying companies maintain “viable and sustainable” business operations.
India and Australia follow suit
In India, the Bombay Stock Exchange (BSE) recently rejected Jetking Infotrain’s application to issue new shares via preferential allotment after the company announced plans to invest part of the proceeds in crypto assets. The firm has appealed the decision, as stated in regulatory filings.
Australia has adopted a similarly cautious stance. The Australian Securities Exchange (ASX) bars 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.
Software firm Locate Technologies Ltd., which began purchasing Bitcoin earlier this year, is now shifting its listing to New Zealand, where the NZX has shown greater openness to hosting DATs.
An ASX spokesperson said that while crypto treasury strategies aren’t explicitly banned, firms pursuing them should consider structuring their exposure as exchange-traded funds (ETFs) to comply with listing standards.
Japan stands out as the only major Asia-Pacific market where listed companies can freely adopt digital-asset treasury strategies. Local regulations permit firms to maintain substantial cash reserves, offering greater flexibility to invest in Bitcoin.
“Once a company discloses it is purchasing Bitcoin, it’s difficult to conclude that such actions are unacceptable,” said Hiromi Yamaji, CEO of Japan Exchange Group, in a September press conference.
Japan currently leads the region with 14 listed Bitcoin-holding firms, according to BitcoinTreasuries.net. Among them is hotel operator Metaplanet Inc., which holds roughly $3.3 billion in Bitcoin. The company’s stock soared earlier this year before falling more than 70% from its June peak.
However, even Japan’s DAT-friendly landscape may be changing. MSCI Inc., one of the world’s largest index providers, has proposed excluding DAT-heavy firms from its global indexes, arguing they resemble investment funds. The move followed Metaplanet’s $1.4 billion share sale in September, with most proceeds directed toward Bitcoin purchases.
Travis Lundy, Japan equity analyst at Smartkarma, warned that if MSCI’s proposal goes through, it could strip DATs of passive fund inflows and remove their valuation premium.”
The divergent approaches across Asia highlight the ongoing regulatory challenge of striking a balance between innovation in digital asset management and investor protection.
While Japan’s flexible rules have encouraged experimentation, Hong Kong, India, and Australia are tightening oversight to maintain market integrity and avoid speculative excesses.
For now, the DAT model, which once symbolized corporate enthusiasm for crypto, is losing momentum as regulators remind markets that digital-asset accumulation, without a sustainable business behind it, remains a risky proposition.
