Analysis of the regulatory storm against crypto treasury companies by Asia's three major stock exchanges

Key Points

Major Asian stock exchanges are collectively resisting listing applications from digital asset treasury (DAT) companies, signaling a more conservative regulatory stance towards cryptocurrencies in the region. The Hong Kong Stock Exchange has rejected at least five applications, India's Bombay Stock Exchange has rejected Jetking Infotrain's listing, and the Australian Stock Exchange has implemented a 50% position limit. This tightening of regulations has led to a sharp drop in the share prices of related companies, resulting in approximately $17 billion in losses for retail investors and potentially triggering a global regulatory chain reaction.

Details of regulatory actions

Hong Kong Exchanges and Clearing (HKEX)

The Hong Kong Stock Exchange, citing its "cash company" rules, has questioned or rejected applications from at least five companies planning to switch to digital asset treasury strategies in recent months, with a target of 2025. Bloomberg

Regulatory framework :

• Cash Company Rules : prohibit listed entities from holding primarily cash, short-term investments or liquid assets (including cryptocurrencies)
• Enforcement mechanism : Through pre-listing review and post-listing monitoring, violators face the risk of rejection, trading suspension or delisting

Official statement : A spokesperson for the Hong Kong Stock Exchange (HKEX) stated (October 22, 2025): "The framework ensures that the businesses and operations of all applicants seeking listing, as well as those already listed, are viable, sustainable, and have substance." Cointelegraph

Bombay Stock Exchange (BSE)

The BSE has rejected the listing application of Jetking Infotrain , which planned to use 60% (approximately Rs 3.96 crore) of the proceeds to purchase Bitcoin.

Timeline :

• May 9, 2025: BSE grants in-principle approval
• May 23, 2025: Jetking's board of directors approves and discloses that 60% of the funds will be used for VDA investment
• September 27, 2025: BSE rejects final listing application

Company response : Jetking joint managing director Siddharth Bharwani said it is "assessing the situation and considering an appeal to the Securities Appellate Tribunal."

Australian Stock Exchange (ASX)

ASX implements a 50% cash holding limit , classifying cryptocurrencies as cash equivalents, effectively preventing large-scale DAT strategies.

Impact Cases :

• Locate Technologies : Due to questions about its holdings of 12.3 Bitcoin (US$1.33 million), it decided to move its listing to the New Zealand Stock Exchange.
• European Lithium (EUR) : Responds to ASX inquiries, commits to comply with disclosure rules if Bitcoin acquisitions are made

Market impact analysis

Share price performance of affected companies

Impact on the global DAT market

Investor losses : 10X Research estimates that retail investors lost approximately $17 billion in DAT -related transactions.

Regional comparison :

• Asia : Over 130 DATs Hold About 58,000 Bitcoins, But New Applications Are Blocked
• US : MicroStrategy and other companies continue to gain support, holding more than 640,000 Bitcoins
• Japan : As an Asian exception, 14 listed companies are allowed to hold Bitcoin, but face the risk of being delisted from the MSCI index

Industry reaction and analysis

Expert opinion

Joshua Chu (Co-chair of the Hong Kong Web3 Association): Emphasized policy differences - Singapore focuses on tokenized payments, Hong Kong focuses on investor protection, India has strict regulations, and Australia focuses on market behavior. He believes that without a strong business case, custody, and risk control, DATs are at risk of being inconsistent with shareholder interests.

Rick Maeda (Crypto Analyst at Presto Research): Points out that "predictable and inclusive" regulations can attract capital, while strict regulations will slow down the adoption of DATs.

Social media sentiment

Discussions on the X platform show that the community is divided on whether regulatory oversight is excessive or necessary. Cointelegraph's tweets have triggered mixed reactions : some users criticized it as excessive intervention that hinders Asia's position as a crypto hub, while others believe it is necessary to protect retail investors from volatility.

Future Impact Outlook

Short-term impact (Q4 2025-Q1 2026)

• Policy implementation : HKEX/BSE/ASX continue to enforce existing rules
• MSCI delisting : finalization expected in December 2025, affecting liquidity
• Legal challenge : Jetking's appeal is expected to be resolved in January 2026

Mid-term changes (2026)

• Asia-Pacific Harmonization : Achieving APAC Harmonization through the ASEAN Fintech Dialogue
• India policy clarity : SEBI likely to issue clear guidance after elections
• EU impact : Full implementation of MiCA could prompt adoption of reserve requirements in Asia

Long-term integration (after 2027)

Experts believe this tightening of regulations is a "necessary maturation" in the consolidation process. Joshua Chu stated that without strong custody and risk controls, DATs risk repeating the speculative practices of the dot-com bubble.

Positive outlook :

• Driving innovation in compliance tools (e.g., Hong Kong AML AI grew 22%)
• Accelerating the TradFi-DeFi integration
• The RWA market could reach over $1 trillion by 2030

Risk factors :

• If regulation is unbalanced, it could lead to offshore capital outflows
• Delay institutional capital inflows for 2-3 years

in conclusion

The resistance of Asia's three major stock exchanges to crypto treasury companies reflects the region's conservative stance on balancing innovation and stability. While this may limit the development of the DAT model in the short term, in the long term, this tightening of regulations may promote a more sustainable and compliant integration of cryptocurrencies and traditional finance. Japan's balanced approach may provide a reference for future regulatory frameworks in Asia.