Several prominent stock exchanges in the Asia-Pacific (APAC) region are resisting companies that are adopting digital asset treasury (DAT) strategies, as reported by Bloomberg on Wednesday.
According to the report, Hong Kong Exchanges and Clearing has raised concerns with at least five companies considering significant cryptocurrency purchases and holdings.
The exchange cited regulations that prohibit extensive liquid holdings.
Recently, India’s Bombay Stock Exchange turned down an application from Jetking Infotrain, which intended to allocate some of its preferential allotment proceeds into crypto, as noted in the report. Similarly, the Australian Stock Exchange (ASX) bars firms from maintaining 50% or more of their balance sheets in cash or cash equivalents, according to Locate Technologies’ CEO Steve Orenstein.
Located in New South Wales, the software firm Locate, with 12.3 BTC (valued at $1.33 million) on its balance sheet, is transitioning its listing to the New Zealand Stock Exchange (NZX), according to a spokesperson, as noted in the report.
This year, a significant number of publicly traded companies have shifted towards DAT strategies, seeking to emulate the business approaches of firms like Strategy (MSTR) and Metaplanet (3350), which have amassed large BTC reserves as assets.
Japan as an exception
Japan, home to Metaplanet, is noted as an exception in the APAC region, as its stock exchanges permit DAT strategies with minimal opposition, according to Bloomberg.
“Once a company is listed, if it provides proper disclosures — such as
announcing its Bitcoin purchases — it would be challenging to conclude that such actions are objectionable,” stated Hiromi Yamaji, CEO of Japan Exchange Group, during a press conference in September.
