Hong Kong Exchanges and Clearing (3888) has questioned at least five companies planning to become Digital Asset Treasury Companies, citing current regulations that prohibit firms from holding excessive amounts of liquid assets, Bloomberg reported.
DATs are publicly listed firms that hold a substantial portfolio of digital assets, such as Bitcoin, as a core business strategy.
If a listed company primarily owns a substantial amount of cash or short-dated securities, it will be regarded as a "cash company" and the trading will be suspended.
The city's bourse operator prevents such transitions into DATs for listed companies, and no approvals have been granted so far, the report said.
The exchange’s spokesperson declined to comment on specific companies being reviewed but emphasized that its framework "ensures that all businesses applying for listing, as well as already-listed companies, have viable, sustainable, and substantive business operations," according to the report.
Similar opposition to DATs was also found in exchanges of India and Australia.
Previously, Chinese tech giants like Alibaba-backed Ant Group and e-commerce group JD.com (9618) have postponed their plans to issue stablecoins in Hong Kong, as China's government raised concerns about the rise of currencies controlled by the private sector, the Financial Times reported.
After the Stablecoin Ordinance took effect in August, the Hong Kong Monetary Authority said the licensing bar is set high and only a limited number of licensed stablecoin issuers will be granted in the initial phase, which is expected to be announced early next year.
