Hong Kong SFC Warns of Crypto Treasury Risks Amid Price Inflation Concerns
Hong Kong's Securities and Futures Commission (SFC) has intensified scrutiny of Digital Asset Treasury (DAT) firms, with chairman Kelvin Wong Tin-yau flagging potential market manipulation and investor risks. These companies are allegedly inflating cryptocurrency valuations, creating a precarious environment for retail participants.
The regulator is expanding oversight of publicly traded firms using crypto for treasury management, citing volatility and speculative dangers often underestimated by investors. Parallels were drawn to U.S. cases where DAT structures collapsed, underscoring the need for preemptive action.
A public education campaign will launch to improve risk awareness, reflecting Hong Kong's balancing act between fostering innovation and maintaining market integrity. The MOVE signals growing institutional vigilance as crypto permeates traditional finance.
