Hong Kong tightens monitoring of DAT companies… 'Must understand fundamental risks'

The Hong Kong government is strengthening monitoring of companies that have adopted the Digital Asset Treasury (DAT).

On the 30th (local time), according to The Block, Kelvin Wong, chairman of the Hong Kong Securities and Futures Commission (SFC), said at a press briefing on the 28th, "(the SFC) is closely monitoring how companies custody and manage digital assets." Wong expressed concern that "the stock prices of DAT companies may be trading at a substantial premium over the cost of holding digital assets," adding, "Investors should fully understand the fundamental risks of DAT."

DAT management guidelines are also expected to be prepared. Wong said, "We will consider the need to establish guidelines related to DAT," and "we also plan to strengthen investor education on DAT."

Hong Kong has taken a negative stance toward DAT companies. Bloomberg reported that "the Hong Kong Stock Exchange has raised objections to the business plans of at least five companies in recent months that are seeking to shift their core operations to DAT."