Summary of this article
Asian exchanges tighten rules, limiting companies’ cryptocurrency treasury strategies.
Australia restricts cash holdings, encourages ETFs for crypto investments.
Japan allows DATs freely; MSCI may exclude large crypto holders.
In Asia, stock exchanges are taking a closer look at companies holding large amounts of cryptocurrency. Exchanges in India and Hong Kong have reportedly started restricting firms from becoming digital-asset treasury vehicles.
According to Bloomberg, Hong Kong Exchanges & Clearing Ltd. has raised objections to the plans of at least five companies seeking to pivot to digital-asset treasury strategies as their core business, citing rules that limit large liquid holdings. None of these firms has received approval yet, and similar restrictions have been reported in India.
Last month, the Bombay Stock Exchange (BSE) rejected Jetking Infotrain’s application to list shares through a preferential allotment as the company had planned to invest part of the proceeds in cryptocurrency. The company is appealing the decision. Bloomberg reports that neither BSE nor Jetking commented on this. This case is similar to restrictions seen in other Asian markets on companies pursuing digital-asset treasury strategies.
Beyond Asian exchanges like those in India and Hong Kong, the broader Asia-Pacific region, including Australia, has rules that affect how listed companies can hold and invest in cryptocurrency.
In Australia, ASX Ltd. bars listed firms from holding 50 per cent or more of their balance sheets in cash or cash-like assets, which makes it difficult to adopt a crypto treasury model. According to a spokesperson for the exchange, firms that pivot to investing in Bitcoin or Ether are encouraged to structure their offering as an exchange-traded fund; otherwise, they are unlikely to be considered suitable for admission to the official list.
While direct crypto holdings aren’t prohibited, companies must carefully manage conflicts with listing rules, leading some, like Locate Technologies, to look into listings in markets like New Zealand, which are more amenable to digital-asset strategies.
While Japan offers a contrasting approach within Asia-Pacific. Japan is a notable outlier in the Asia-Pacific region, where public companies commonly hold large amounts of cash and listing rules allow digital-asset treasury (DAT) strategies relatively freely. The country has 14 listed Bitcoin buyers, including Metaplanet Inc., which holds about $3.3 billion in Bitcoin. Other firms, such as Convano Inc., have announced plans to raise significant funds to purchase Bitcoin. Even in Japan, some friction exists, including regulatory and market considerations.
MSCI has proposed excluding firms from its global indexes if their crypto holdings make up 50 per cent or more of their total assets.
