Inventory exchanges in India, Hong Kong, and Australia have reportedly begun blocking or limiting firms from changing into digital asset treasury automobiles.
Hong Kong Exchanges & Clearing Ltd. has rejected at the very least 5 firms looking for to turn into DATs, citing guidelines in opposition to “money firms” that maintain primarily liquid belongings, according to a Bloomberg report on Wednesday, citing nameless sources.
The Bombay Inventory Change rejected a list software final month from an organization after it introduced plans to speculate proceeds in crypto.
In the meantime, Australia’s ASX bars firms from holding greater than half of their steadiness sheets in cash-like belongings akin to crypto, making DAT fashions “primarily not possible.”
ASX-listed corporations that pivot to investing in crypto “are inspired to contemplate structuring their providing as an exchange-traded fund,” stated 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) consumers, together with the world’s fourth-largest Bitcoin DAT, Metaplanet.
Nevertheless, 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 reduce off passive funding flows.
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Cointelegraph reached out to all three inventory exchanges however didn’t obtain a right away response.
Firms accused of promoting their listed standing
Some bourses have expressed concern about these firms promoting their “listed standing” quite than working legit working companies, Bloomberg reported.
There’s additionally the “money firm” situation with corporations holding largely liquid belongings, doubtlessly trying like empty shell firms that might be used for improper functions.
Regulators additionally need listed firms to have actual operations, not simply be funding automobiles holding belongings, it acknowledged.
Crypto treasury mannequin on skinny ice
DATs arguably drove crypto markets this 12 months, however many at the moment are struggling, buying and selling at or under their web asset values (NAVs) as markets have corrected closely.
Researchers at 10x Analysis said that the “age of economic magic is ending for Bitcoin treasury firms,” 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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