Hong Kong Regulator Scrutinizes Crypto Treasuries Amid Rising Concerns
Hong Kong's Securities and Futures Commission (SFC) has initiated an inquiry into how publicly listed companies manage their cryptocurrency holdings. Chairman Kelvin Wong Tin-yau raised alarms about the significant premiums on stock prices of crypto-focused firms, drawing parallels to investor losses seen in U.S. markets.
The SFC is evaluating whether stricter guidelines are needed to mitigate risks posed by volatile digital asset treasuries (DATs). Wong emphasized that retail investors often underestimate these risks, prompting plans for targeted education campaigns.
While cryptocurrency balancesheets gain prominence, regulators warn their inherent volatility creates uncertainty. The MOVE reflects Hong Kong's cautious approach to digital assets despite growing corporate adoption.
