Asian Exchanges Slam Door on Bitcoin Treasury Firms - Crypto Innovation Hits Regulatory Wall
Asian markets just delivered a brutal reality check to crypto-forward corporations.
REGULATORY SHOWDOWN
Major Asian stock exchanges are systematically rejecting companies with significant Bitcoin treasury holdings. The message is clear: traditional finance isn't ready to dance with digital assets.
These aren't small regional boards either—we're talking about exchanges that collectively represent trillions in market capitalization. They're drawing a hard line between conventional equities and crypto-exposed businesses.
THE COMPLIANCE HAMMER
Regulatory uncertainty continues to be the killer app for institutional adoption. While crypto natives see Bitcoin treasuries as strategic innovation, traditional exchanges see compliance nightmares and volatility risks.
It's the classic finance sector move—when you can't understand the technology, regulate it into submission. Because nothing says 'innovation-friendly' like slamming doors on emerging asset classes.
This regulatory cold shoulder might slow institutional crypto adoption temporarily, but it won't stop the inevitable. The genie's out of the bottle—and it's wearing a Bitcoin t-shirt.
Companies adopting Bitcoin treasury strategy
The pushback comes as hundreds of companies globally have adopted the Bitcoin treasury model pioneered by Michael Saylor's Strategy Inc., which now holds over 640,000 BTC worth approximately $70 billion.
This week, Citi gave Strategy a "buy" rating with a $485 price target but warned the stock "presents significant risks due to its positioning as a leveraged proxy for Bitcoin," noting even moderate Bitcoin price declines can lead to magnified shareholder losses.
On prediction market Myriad, launched by Decrypt’s parent company Dastan, users overwhelmingly expect Strategy to stay the course on its Bitcoin acquisition spree, placing only a 7% chance on the firm selling any Bitcoin this year.
"The elephant in the room is are DATs really justified?" Chu questioned, noting "without a credible business case, rigorous governance, robust custody, and transparent risk controls, such DAT structures can become misaligned with shareholder interests and could invite the kind of liquidity and governance risks regulators worry about."
He warned against loosening traditional corporate rules for crypto treasuries, noting they protect against "volatility arbitrage shells disguised as Leveraged Bitcoin plays" that led to the recent retail losses.
Traditional corporate rules should still govern digital-asset treasuries," Chu said, warning that loosening them risks a repeat of the dot-com era’s “speculative frenzy without revenue backing.
Siddarth Bharwani, JMD and CFO of Jetking Infotrain, told Decrypt the company's appeal to the Securities Appellate Tribunal following BSE’s rejection "isn't about confrontation—it's about clarification.”
He called the rejection "a missed opportunity to explore how Indian listed companies can responsibly innovate" with Bitcoin in ways that add long-term shareholder value.
"India is unique in its challenges,” Bharwani said, noting that while there is demand for digital assets and flourishing ecosystems being built, “a lack of clarity is causing founders to MOVE away offshore."
Countries like Japan and the UAE are creating regulatory frameworks, he added, while India, Hong Kong and Australia “need to openly support such innovations."
