Inventory exchanges in India, Hong Kong, and Australia have reportedly begun blocking or limiting corporations from turning into digital asset treasury automobiles.
Hong Kong Exchanges & Clearing Ltd. has rejected a minimum of 5 corporations in search of to develop into DATs, citing guidelines towards “money corporations” that maintain primarily liquid property, according to a Bloomberg report on Wednesday, citing nameless sources.
The Bombay Inventory Alternate rejected a list utility final month from an organization after it introduced plans to take a position proceeds in crypto.
In the meantime, Australia’s ASX bars corporations from holding greater than half of their stability sheets in cash-like property corresponding to crypto, making DAT fashions “primarily inconceivable.”
ASX-listed corporations that pivot to investing in crypto “are inspired to contemplate structuring their providing as an exchange-traded fund,” mentioned a spokesperson.
Japan is the outlier
Japanese inventory exchanges stay open to the idea. Japan permits DATs with correct disclosure and hosts probably the most in Asia — 14 listed Bitcoin (BTC) patrons, together with the world’s fourth-largest Bitcoin DAT, Metaplanet.
Nonetheless, MSCI, one of many world’s largest index suppliers, is proposing to exclude giant DATs with greater than 50% crypto holdings from its indexes, which might lower off passive funding flows.
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Cointelegraph reached out to all three inventory exchanges however didn’t obtain a direct response.
Corporations accused of promoting their listed standing
Some bourses have expressed concern about these corporations promoting their “listed standing” relatively than working professional working companies, Bloomberg reported.
There’s additionally the “money firm” subject with corporations holding principally liquid property, doubtlessly wanting like empty shell corporations that might be used for improper functions.
Regulators additionally need listed corporations to have actual operations, not simply be funding automobiles holding property, it acknowledged.
Crypto treasury mannequin on skinny ice
DATs arguably drove crypto markets this 12 months, however many are actually struggling, buying and selling at or beneath their internet asset values (NAVs) as markets have corrected closely.
Researchers at 10x Analysis said that the “age of monetary magic is ending for Bitcoin treasury corporations,” citing slumping share costs, particularly at Metaplanet.
Even BitMine chair Tom Lee hinted earlier this month that the DAT bubble could have burst.
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