Asia Tightens Grip on Crypto Treasuries as Hong Kong, India, Australia Impose Restrictions

Regulators across Asia are clamping down on listed firms acting as crypto treasuries, with Hong Kong, India, and Australia leading the charge. Hong Kong Exchanges & Clearing Ltd. has rejected at least five digital asset treasury proposals this year, citing rules against 'cash companies' holding primarily liquid assets like cryptocurrencies. The Bombay Stock Exchange similarly blocked a listing after the applicant revealed plans to invest in crypto.

Australia’s ASX has imposed a 50% cap on crypto or similar liquid asset holdings for listed firms. Meanwhile, Japan remains a outlier, allowing crypto treasuries with proper disclosures. The moves reflect growing regulatory unease over companies using public listings as vehicles for crypto exposure.

Index provider MSCI is considering excluding firms with substantial crypto holdings from its benchmarks, signaling institutional skepticism. The coordinated crackdown suggests regulators view crypto treasuries as potentially destabilizing to traditional markets.