Asia and Australia curb digital asset treasuries, Japan an exception

Several major stock exchanges in Asia and Australia have moved in recent months to block or restrict publicly traded companies that seek to become digital asset treasuries, or DATs, a business model in which firms hold large quantities of cryptocurrencies as a core corporate asset. Exchange officials and people familiar with confidential listing applications said Hong Kong Exchanges and Clearing has challenged at least five firms attempting to pivot to DAT strategies, the Bombay Stock Exchange last month declined to list a company after it said it would invest proceeds in crypto, and the Australian Securities Exchange enforces rules that effectively bar companies from holding half or more of their balance sheets in cashlike assets.

The measures reflect listing regimes designed to ensure listed companies have substantive operating businesses and do not function primarily as investment holding vehicles. An HKEX spokesperson said the exchange’s framework “ensures that the businesses and operations of all applicants seeking to list, as well as those already listed, are viable and sustainable, and of substance.” In India, a filing shows the rejected company is appealing the Bombay...