Hong Kong’s SFC has raised concerns about the rise of digital asset treasuries, companies that put crypto on their balance sheet.

Hong Kong SFC Is Closely Monitoring Crypto Treasury Developments

As reported by the South China Morning Post, Hong Kong’s Securities and Futures Commission (SFC) is keeping an eye on how firms are using crypto as part of their treasury management. The term Digital Asset Treasury (DAT) refers to a public company that acquires and holds Bitcoin or other cryptocurrencies to give stockholders exposure to price movements.

Often, the stock price of such firms trades at a premium compared to their treasury reserves, and this seems to be where the SFC’s concern lies. Kelvin Wong Tin-yau, the regulator’s chairman, noted, “The SFC is concerned about whether DAT

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