Asian stock exchanges, including the Hong Kong Exchanges and Clearing Limited and the Bombay Stock Exchange, have started tightening scrutiny on companies looking to adopt crypto treasury strategies.

Throughout Asia, several companies that have disclosed plans to hoard cryptocurrencies have met with resistance from regulators, according to a Bloomberg report, which pointed to recent clampdowns across Hong Kong, India, and Australia.

Unnamed sources familiar with the development told Bloomberg that the Hong Kong Exchanges and Clearing Limited (HKEX) has pushed back against at least five listed companies in recent months that sought to adopt digital asset treasury strategies as their core business model.

Regarding its decision, HKEX has reportedly cited existing rules that prohibit firms from holding large liquid assets unless such holdings are directly tied to the company’s primary operations. 

Under these regulations, companies with asset compositions primarily made up of cash or short-term investments risk being classified as “cash companies” and may face suspension from trading.

The bourse’s aim, according to the report, is to prevent shell-like entities from exploiting their listed status for speculative gains.

A spokesperson for HKEX, while declining to comment on individual cases, stated that its framework is designed to ensure listed firms remain viable, sustainable, and grounded in substance.

As such, the current regulatory environment effectively bars any company from becoming a pure-play Bitcoin accumulator unless it can prove that digital assets are central to its operations.

A similar situation has emerged in India, where the Bombay Stock Exchange recently rejected Jetking Infotrain’s proposal to invest proceeds from a preferential share allotment into cryptocurrencies.

The exchange did not issue a detailed public statement, but filings show that Jetking’s intent to use capital for digital assets played a key role in the rejection.

In India, cryptocurrencies remain within a regulatory limbo as the government and key agencies like the Reserve Bank of India have long remained cautious on crypto-related ventures.

Japan stands in contrast to its regional peers, as there, companies have found more regulatory breathing room to adopt crypto treasury strategies.

Publicly listed firms in Japan are already known to maintain large cash reserves, and regulators have taken a more permissive stance. 

Japan Exchange Group CEO Hiromi Yamaji recently said that as long as listed companies make appropriate disclosures, such as notifying investors of planned Bitcoin purchases, the actions are not inherently unacceptable.

As a result, Japan now has the highest number of publicly listed Bitcoin-holding firms in Asia.

These include former hotelier Metaplanet Inc., which holds over 30,000 BTC and has seen wild swings in its share price as a result. 

Other notable cases include Quantum Solutions and Convano, the latter of which made headlines by announcing plans to raise billions of yen to buy Bitcoin despite operating a chain of nail salons.

However, even Japan is not without challenges, as leading Index provider MSCI has recently proposed excluding firms like Metaplanet from global indexes over concerns that such companies may function more like investment funds.

This could restrict passive capital inflows from funds that track the indexes and also dampen valuations.

Nevertheless, crypto treasury strategies have become an increasingly popular reserve model within Asian markets, particularly among smaller firms looking to differentiate themselves or attract investor interest.

According to data from BitcoinTreasuries.net, more than 130 firms across the continent have embraced some form of digital asset reserve strategy, collectively holding around 58,000 BTC.

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