Hong Kong’s SFC Strives to Foster Crypto Innovation While Safeguarding Investors Amid DAT Challenges
- Hong Kong's SFC warns DATs (digital asset treasuries) pose risks as stocks trade at premiums over underlying crypto holdings, exposing investors to volatility. - Regulator highlights lack of DAT-specific rules in Hong Kong, with exchange rejecting five DAT-based listing proposals citing liquidity concerns. - SFC emphasizes balancing innovation with investor protection, urging education on DAT risks while reviewing 2018 listing reforms for tech firms. - Global debate over DATs' speculative nature intensif
Hong Kong’s primary financial watchdog has expressed concerns about the dangers linked to digital asset treasuries (DATs), cautioning that firms trading at high premiums compared to their actual asset values may subject investors to unnecessary market swings. According to local reports, the Securities and Futures Commission (SFC) is closely observing how companies handle DATs and is evaluating the potential need for updated regulatory measures, as referenced by
The SFC’s apprehension arises from a rising pattern of publicly listed firms turning to cryptocurrencies and digital assets to manage surplus funds—a strategy gaining momentum worldwide but still lacking oversight in Hong Kong. Wong remarked that there are currently no dedicated regulations for DAT activities in the city and mentioned that the regulator will assess whether such rules should be introduced. This follows the Hong Kong Stock Exchange’s decision to turn down applications from at least five companies aiming to structure their businesses around DATs, citing existing restrictions on substantial liquid asset holdings.
Wong’s statements illustrate the SFC’s commitment to balancing innovation with investor protection. “The reform will examine whether more firms can be listed under this framework while still safeguarding investor interests,” he said, referring to ongoing initiatives to update Hong Kong’s listing rules to attract technology companies, as reported by the
The SFC’s prudent stance mirrors a worldwide discussion about DATs, with critics claiming that the premiums seen on these stocks are often driven by speculation rather than real value. Wong cautioned that retail investors might not fully understand the associated risks, advising them to carefully examine the underlying assets and governance structures of DAT firms. His comments are consistent with Hong Kong’s general regulatory philosophy, which has traditionally favored stability over the rapid embrace of crypto innovations.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AERO’s Share Repurchases and Strategic Partnerships Drive Surge Amid Market Slump
- AERO surged 36% in October 2025 amid crypto market declines, driven by Aerodrome's buybacks and institutional backing. - Protocol revenue exceeding emissions and 560,000 token buybacks signaled financial sustainability, boosting investor confidence. - Animoca Brands' AERO acquisition and governance stake highlighted institutional trust in Aerodrome's Base ecosystem leadership. - AERO's 50% TVL dominance on Base and MWX's AI token launch reinforced its role as a DeFi innovation hub with deflationary mecha
Fed's Decision to Lower Rates Faces Opposition Due to Uncertain Data and Ongoing Inflation Worries
- Fed cuts rates by 25 bps to address slowing growth and elevated inflation, marking its second 2025 cut amid economic uncertainty. - Two officials dissented: Miran (50-basis-point cut) and Schmid (no cut), highlighting internal debates over inflation risks. - Government shutdown disrupted key data, forcing reliance on private metrics as markets priced in 96.7% chance of December cut. - Bitcoin surged past $116,000 while S&P/Nasdaq hit records, but Schmid warned rate easing risks undermining 2% inflation c
Bitcoin News Update: Financial Authorities Transform the Industry by Adopting Crypto Integration Amid Stablecoin Growth
- Global regulators intensify crypto banking oversight as stablecoins surge, with Japan's FSA pioneering policies allowing banks to hold and trade cryptocurrencies. - France opposes CBDCs, proposing 2% Bitcoin ownership and relaxed crypto lending rules, aligning with U.S. stablecoin-friendly frameworks like the GENIUS Act. - Stablecoin adoption expands rapidly, with EURAU's blockchain interoperability and Standard Chartered predicting $2T in tokenized assets by 2028. - Regulatory shifts reflect global tren
USDC Overtakes USDT as MiCA Regulations Transform the Stablecoin Market
- JPMorgan reports USDC outpaces USDT in onchain activity due to regulatory clarity and institutional adoption, with a 72% market cap surge to $74B this year. - MiCA compliance in Europe boosted USDC adoption, contrasting USDT's delistings, while integrations with Visa/Mastercard and CCTP expanded DeFi utility. - Circle's partnership with ClearBank enabled MiCA-compliant cross-border payments, driving stock gains from $92 to $146 and $33.45B market cap. - Analysts highlight USDC's regulatory edge as a mode
Trending news
MoreCrypto prices
More
