Hong Kong’s top regulator flags digital asset treasury risks: report

Hong Kong's Securities and Futures Commission (SFC), led by Chairman Kelvin Wong Tin-yau, is actively studying how listed companies manage their Digital Asset Treasuries (DATs) and is exploring the necessity of establishing new guidelines. The SFC is particularly concerned about situations where DAT companies' stock prices trade at a significant premium over the actual cost of their digital asset holdings, referencing U.S. cases where such premiums exposed investors to unnecessary risks. Wong cautioned retail investors to fully understand these underlying risks and stated the SFC will enhance investor education. Currently, Hong Kong lacks specific regulations for DAT arrangements, and the Hong Kong Stock Exchange has reportedly challenged plans from companies aiming to make DATs their core business, citing rules against large liquid holdings.

(Source：The Block)