Hong Kong Securities and Futures Commission (SFC) began examining how publicly traded companies manage cryptocurrency treasuries (DAT). SCMPAccording to the information provided by , the regulatory body is investigating whether guidelines on the subject are necessary on the grounds that current practices may pose a risk to investors. Commission President Kelvin Wong Tin-yauHe said that the excessive premiums seen in the share prices of cryptocurrency-focused companies are causing concern.
Cryptocurrency Treasures are on the Agenda with Increased Interest
SFC President Wong said at the press conference: cryptocurrency He stated that the market values of companies with treasuries are traded well above the cost of their assets. Reminding that similar situations in the USA cause serious losses for investors, Wong pointed out that similar risks may occur in Hong Kong. By editor cryptocurrency treasures Although they have recently gained visibility in company balance sheets, the volatile nature of these assets creates uncertainty for investors.
Wong stated that individual investors cannot fully understand the risks associated with DATs and announced that investor education will be strengthened. In this context SFCIt was stated that it plans to inform market participants by organizing awareness campaigns.
Hong Kong Distanced from Local DAT Models
There is currently no specific legislation in Hong Kong regulating companies’ cryptocurrency holdings. Speaking to local newspaper Wenweipo, Wong said that the institution is evaluating the necessity of new guidelines in this area. However, the regulatory authority has not been sympathetic to the creation of local DAT structures so far.
According to the news published by Bloomberg last week Hong Kong Stock Exchange has opposed attempts by at least five companies to make cryptocurrency treasury their core business. The exchange rejected the applications, reminding that large asset positions with high liquidity are prohibited under current rules. This shows that Hong Kong maintains its cautious attitude in the field of digital assets.
