Hong Kong Exchange Cracks Down on Crypto Storage Vehicles: Regulatory Storm Brews
Hong Kong's financial watchdog tightens the screws on cryptocurrency storage mechanisms—sending shockwaves through digital asset markets.
The Regulatory Hammer Drops
Exchange officials now scrutinize crypto hoarding vehicles with unprecedented intensity. Market participants scramble to comply with new transparency requirements.
Compliance Costs Skyrocket
Traditional finance gatekeepers deploy their favorite weapon: paperwork mountains. Because nothing protects investors like quadruplicate forms in triplicate.
Digital asset firms face heightened reporting standards—forcing operational overhauls across the sector. The regulatory squeeze accelerates as Hong Kong positions itself as Asia's crypto hub while maintaining iron-fisted oversight.
Welcome to financial innovation: where every breakthrough gets buried under compliance requirements thicker than a blockchain ledger.
Increasing Number of Digital Asset Hoarders: Promise and Peril
DATs were born in 2020 when Michael Saylor, CEO of MicroStrategy (later renamed Strategy) announced via an SEC filing that the company had purchased Bitcoin as part of a “new capital allocation strategy.”
As of September 2025, 178 listed companies collectively hold 989,926 bitcoin valued at about $107 billion, led by Saylor’s Strategy.
As several companies are looking to accumulate large amounts of crypto for their treasuries, many are questioning whether this signals genuine institutional maturity.
Kevin de Patoul, CEO of global crypto investment firm Keyrock, told Cryptonews that the credibility of their strategies matters more than short-term accumulation.
“The focus shouldn’t just be on the number of BTC or ETH they hold,” he said. “There should be curiosity behind who’s running it and whether they actually understand the ecosystem they’re investing in. It’s one thing to raise capital and buy tokens; it’s another to use that war chest to build meaningful projects and infrastructure. The leadership’s pedigree and the credibility of their strategy matter far more than short-term accumulation metrics.”
Jurisdictions that Put DAT Firms Under Lens
HKEX’s scrutiny aligns with similar regulatory tightening in nations, including India and Australia. For instance, the Bombay Stock Exchange vetoed an application last month from Jetking Infotrain, which planned to invest heavily in crypto. The action highlighted India’s regulatory void for DAT firms.
Further, the Australian exchange (ASX) has restricted listed companies from holding over 50% or more of their balance sheets in “cash-like” assets.
This makes firms “essentially impossible” to adopt a crypto treasury model, said Steve Orenstein, CEO of Locate Technologies Ltd.
Japan, on the other hand, has had a different view on DATs. Home to the fourth-largest corporate Bitcoin holders, Metaplanet, the nation has the most of Asia’s corporate BTC holders. As of Oct 22, Metaplanet holds a total of 30,823 Bitcoin valued at $3.33 billion.
