Asia's stock exchanges are pushing back against crypto treasuries: Report

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  Stocks and Investing on Wed, Oct 22nd, 2025 by CoinTelegraph

Asian Stock Exchanges Clamp Down on Crypto Treasury Hoarding Practices

Asian stock exchanges are tightening their regulatory stance on cryptocurrency treasury firms that have been aggressively accumulating digital assets. In a recent move that signals a shift toward stricter oversight, leading bourses in Tokyo, Hong Kong, and Singapore have issued joint statements condemning the practice of hoarding large volumes of tokens without adequate transparency or risk management. The initiative comes amid growing concerns that such accumulation could destabilize market liquidity, expose investors to systemic risk, and erode confidence in the broader financial ecosystem.

The core of the dispute centers on a group of companies that have emerged as “crypto treasury” operators, a designation that implies they manage and invest institutional digital‑asset holdings. One of the most vocal examples is the “Crypto Treasury Company” (CTC), a Singapore‑based firm that reportedly amassed over $1.5 billion worth of various cryptocurrencies in a matter of months. According to leaked internal documents accessed by investigative journalists, CTC’s portfolio heavily weighted on low‑liquidity altcoins and unlisted tokens, which raised red flags among regulators in the region.

Key Concerns Highlighted by the Exchanges

1. Liquidity Risks
   Asian bourses argue that large‑scale hoarding by a single entity can create liquidity bottlenecks. When CTC and similar firms hold significant stakes in niche tokens, the price impact of any eventual sale can be substantial. This could trigger sudden price swings, jeopardizing the stability of both crypto and fiat markets. The Tokyo Stock Exchange cited a 15‑percent price dip in the Bitcoin‑derived token “XBT‑Y” after CTC announced a large sell‑off, underscoring the systemic implications.

2. Transparency and Reporting Standards
   Existing disclosure frameworks for crypto holdings are largely voluntary, which the exchanges say leaves a regulatory gray area. CTC’s financial statements lacked detailed breakdowns of token valuations, holding periods, and hedging strategies. In response, the Hong Kong Exchanges and Clearing (HKEX) introduced a new mandatory reporting requirement for crypto treasury operators: periodic disclosures of holdings, transaction histories, and counterparty risk assessments.

3. Risk Management Practices
   The lack of standardized risk‑management protocols among crypto treasuries is a central concern. The Singapore Exchange (SGX) noted that CTC’s internal risk model did not account for the “flash crash” potential inherent in decentralized markets. As a remedy, SGX is piloting a risk‑assessment toolkit that incorporates stress‑testing against historical volatility spikes.

4. Investor Protection
   Retail and institutional investors alike are wary of being exposed to opaque token holdings. The exchanges’ joint statement emphasizes the need for clear, auditable records to prevent potential fraud or misallocation of assets. In light of these concerns, the exchanges are collaborating on a certification process for crypto treasuries, akin to the “blue‑chip” status in traditional finance.

Regulatory Collaboration and Upcoming Initiatives

The joint statement is part of a broader regulatory collaboration that involves the Monetary Authority of Singapore (MAS), the Hong Kong Monetary Authority (HKMA), and Japan’s Financial Services Agency (FSA). These bodies plan to harmonize regulatory frameworks and share intelligence on crypto treasury operators. The collaboration is expected to produce a set of best‑practice guidelines within the next six months, with a particular focus on:

• Mandatory disclosure of digital‑asset holdings in both audited financial statements and real‑time dashboards.
• Enforcement of capital‑adequacy ratios for crypto treasuries, modeled after Basel III standards but adapted for digital assets.
• Standardized procedures for conducting periodic independent audits of crypto portfolios.
• Implementation of “no‑lock‑up” clauses that prevent hoarding beyond a 24‑month horizon.

Industry Reaction

While the exchanges and regulators largely support the measures, several crypto treasury firms have expressed concerns that the new rules may stifle innovation. CTC’s chief risk officer, a former JP Morgan derivatives trader, warned that the stringent compliance regime could dissuade other institutional players from entering the crypto market. Nevertheless, the industry’s leading venture capitalists—who have invested heavily in blockchain startups—have largely welcomed the increased clarity.

In a recent interview, the co‑founder of a leading crypto exchange in Singapore acknowledged that “the market still needs a healthy dose of risk management and transparency if it is to be considered a mainstream asset class.” The exchange, which is listed on the SGX, announced plans to launch a “Crypto Treasury Advisory” service that will help smaller firms navigate the new regulatory landscape.

Future Outlook

The Asian bourses’ pushback against crypto treasury hoarding marks a pivotal shift in how digital assets are regulated in one of the world’s most vibrant financial markets. By enforcing stricter disclosure, risk‑management, and investor‑protection protocols, the exchanges aim to create a more stable, transparent environment for institutional and retail investors alike.

The forthcoming guidelines and regulatory harmonization efforts are likely to ripple across other global markets, potentially setting a precedent for the next generation of crypto regulation. Whether these measures will effectively curb hoarding practices or simply push them into more opaque corners remains to be seen. However, the consensus among regulators, exchanges, and key market participants is clear: transparency and risk control are indispensable for the sustainable growth of the crypto treasury sector.

In the meantime, stakeholders will monitor the implementation of the new rules closely, as they may have far‑reaching implications for token valuation, market liquidity, and the overall integration of digital assets into mainstream finance.