Hong Kong’s securities watchdog is studying how listed companies operate digital asset treasuries (DAT) and exploring whether relevant guidelines are necessary, local media reported.
Kelvin Wong Tin-yau, the chairman of Hong Kong’s Securities and Futures Commission, said in a Tuesday media briefing that the agency is closely monitoring how firms manage their digital asset treasuries, the South China Morning Post reported today.
“The SFC is concerned about whether DAT companies’ share prices are traded at a substantial premium above the cost of their DAT holdings,” Wong reportedly said, citing U.S. cases where high premiums on DAT stocks exposed investors to unnecessary risks.
Wong added that retail investors may lack a full understanding of the risks associated with these companies. “We caution investors to fully understand the underlying risks of DAT,” he said, adding that the SFC will step up investor education efforts on the topic.
Local newspaper Wenweipo, citing Wong, reported that Hong Kong currently has no specific regulations governing companies’ digital asset treasury arrangements. Wong noted that the SFC will study whether it is necessary to establish guidelines on DATs.
While DATs gain momentum across the global crypto industry, Hong Kong has so far been against the establishment of local DATs. Bloomberg reported last week that the Hong Kong Stock Exchange has challenged plans from at least five companies seeking to make DATs their core businesses, citing rules that prohibit large liquid holdings.
The Block has reached out to the SFC for further comment.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
