What happened?
Hong Kong’s markets regulator said it’s stepping up oversight of listed companies that are using cryptocurrencies as corporate treasuries and is launching a public awareness push about the risks. The SFC warned that some firms’ share prices may be trading at big premiums to the value of their token holdings and said it’s tracking recent DAT pivots closely. The Hong Kong Stock Exchange has even pushed back or challenged at least five companies trying to make digital asset treasuries their main business.
Who does this affect?
This affects listed companies that hold large crypto balances or want to pivot their business toward digital assets, as they may face tougher listing scrutiny or limits on how much liquid crypto they can hold. It also hits retail investors who might not fully understand the volatility and accounting complications of DAT strategies, along with exchanges and regulators trying to manage market integrity. Finally, treasury managers, crypto-native firms and brokers will feel the impact as funding, disclosures and marketability of token-heavy firms come under greater pressure.
Why does this matter?
Tighter oversight could reduce the valuation premiums that crypto-heavy firms have enjoyed, which may cut speculative momentum and make those stocks more closely tied to actual business performance. That shift can lower short-term volatility from price disconnects but could also reduce liquidity and investor appetite for DAT-style companies, shifting demand toward regulated crypto products like spot ETFs. Overall, the move aims to protect investors and stabilize markets by preventing equity prices from being driven mainly by volatile token holdings rather than sustainable operations.