Hong Kong Stock Exchange responds to tightening regulation of encryption treasury companies: It is necessary to ensure that business operations have substantial content.

On October 22, in response to the previous Bloomberg report “Three major securities exchanges in the Asia-Pacific region tighten regulations, hindering the transformation of encryption treasury (DAT) companies,” a spokesperson for the Hong Kong Stock Exchange stated that the framework ensures that all applicants seeking to list and those already listed have viable, sustainable, and substantive business and operations. It is reported that the Hong Kong Stock Exchange has recently questioned the strategic plans of at least five companies to transition to encryption treasury (DAT) companies, citing violations of regulations prohibiting the holding of large amounts of liquid assets.

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