Hong Kong Regulator Enhances Oversight on Digital Asset Treasuries
Hong Kong's Securities and Futures Commission (SFC) is intensifying scrutiny of digital asset treasuries to mitigate investor risks. Chair Kelvin Wong Tin-yau highlighted concerns over listed companies using cryptocurrencies for surplus cash management or pivoting to digital assets as a core business strategy. The MOVE follows resistance from the Hong Kong Exchanges and Clearing against at least five firms seeking such shifts.
Global parallels emerge as regulators in India and Australia similarly challenge firms tying valuations to volatile crypto holdings. US examples underscore how crypto holdings can distort equity valuations, reinforcing the SFC's cautious approach.