Hong Kong Regulators Block Digital Asset Treasury Shifts Amid Valuation Concerns
Hong Kong's Securities and Futures Commission (SFC) has intervened to prevent at least five listed companies from transitioning to digital asset treasury models. The move comes as regulators scrutinize potential valuation bubbles tied to crypto holdings.
SFC chairman Kelvin Wong Tin-yau expressed concerns about share prices trading at substantial premiums above the underlying value of digital asset holdings. The regulator is studying whether formal guidelines are needed for public companies holding cryptocurrencies.
Research from Singapore-based 10X Research suggests retail investors may have lost an estimated $17 billion trading digital asset treasury companies, with many paying significant premiums for crypto exposure through equity markets.
