Tag: distinguishing

Hong Kong exchange questions DAT transformation plans of multiple companies

The post Hong Kong exchange questions DAT transformation plans of multiple companies appeared com. The Hong Kong Stock Exchange has “blocked” the transformation plans proposed by at least five listed companies seeking to convert into digital asset treasury told reporters that Hong Kong lacks legislation regulating listed companies’ participation in cryptocurrency investment or treasury arrangements. He explained that the regulator is monitoring market developments closely and will issue a directive if new guidance is needed to safeguard investors. “The DAT model has gained popularity in the United States,” Huang said, referencing the trend of firms that allocate cash reserves to buy digital assets as treasury holdings. “There are many documents and analyses showing that when a company buys $1 billion in virtual currencies, its market value can rise by more than double. But that situation is also under review in the United States.” The CSRC chairman also warned that most local investors have little understanding of what DATs actually are. “As a regulatory agency, investor education is essential. After education, investors will realize that stock prices and valuations of companies transforming into DATs often carry significant premiums. If these activities become officially regulated one day, those premiums could disappear overnight,” he surmised. He added that if any DAT company were to apply for a Hong Kong initial public offering, the firm would have to fully convince both the CSRC and the Stock Exchange during the approval process. “It should be.