Asian Exchanges Reject Cryptocurrency Listings
Date: 2025-10-23 Author: Henry Casey Categories: BUSINESS
The Asia-Pacific region's largest exchanges have taken a tough stance against companies that attempt to enter the market disguised as traditional publicly traded entities but are actually investing in cryptocurrency. According to Bloomberg, exchanges in Hong Kong, India, and Australia are rejecting listing applications from DAT projects that employ a strategy similar to Michael Saylor's Strategy, which involves acquiring digital assets as the company's primary asset.
In Hong Kong, the operator of the Hong Kong Exchanges and Clearing (HKEX) has rejected at least five such projects in recent months. According to the publication's sources, not a single DAT fund has received listing approval. Local legislation is aimed at preventing companies from effectively using their public status as a means of raising capital for cryptocurrency speculation. Hong Kong's legal regulations also prohibit registered companies from engaging in activities exclusively related to digital assets.
In India, the situation is similar. In September, the Bombay Stock Exchange rejected an application by Jetking Infotrain, which intended to use part of its raised funds to purchase cryptocurrency. The exchange deemed this business model too risky and inconsistent with public offering requirements.
The Australian stock exchange ASX has also taken a firm stance: it prohibits companies whose shares are traded on the exchange from holding half or more of their assets in cash or cash equivalents. This makes it impossible to use cryptocurrency as a primary reserve. As a result, many DAT projects are moving their listings to New Zealand, where regulation is less stringent. At the same time, the ASX advises such companies to consider issuing exchange-traded funds (ETFs) to structure their offerings in accordance with regulatory requirements.
The activity of such companies has noticeably decreased recently. Analysts note a decline in investor interest and a decline in share prices for DAT projects. They estimate that retail investors have already lost approximately $17 billion invested in such companies.
The shares of Strategy (MSTR), the largest public Bitcoin holder, have fallen by approximately 34% since July, falling from $455 to $300. BitMine CEO Tom Lee believes the market for such projects is oversaturated, their shares are losing value, and the market capitalization of many companies has already fallen below the value of their own cryptocurrency reserves. According to the expert, the "bubble" for these companies has likely already begun to deflate.
