Ethereum News Today: Regulatory Uncertainty Halts Huajian's $410M Ethereum Push

Huajian Medical Holdings Limited has suspended its $410 million plan to acquire Ethereum (ETH), citing delays in securing shareholder approval, according to a Weex report. The Hong Kong-listed healthcare firm initially announced in August its intention to purchase up to 3 billion yuan ($410 million) worth of cryptocurrency but has since paused the process, stating it requires additional time to obtain necessary approvals, according to a Coincu report. The company emphasized that any future ETH purchases will comply with Hong Kong Stock Exchange (HKEX) rules, particularly Chapter 14, which mandates disclosure of significant transactions, the Weex report said.

The suspension highlights the challenges companies face in navigating Hong Kong's cautious regulatory environment for cryptocurrency investments. The Hong Kong Securities and Futures Commission (SFC) has explicitly blocked firms from listing as Digital Asset Treasuries (DATs), a structure where companies hold large portions of their capital in cryptocurrencies like Bitcoin or Ethereum, according to a TradingView report. SFC Chairman Wong Tin-yau warned that such ventures carry high volatility and regulatory uncertainty, noting that any formal oversight could erase the premium often enjoyed by DAT shares; the TradingView report also noted that Hong Kong currently lacks a legal framework to govern listed companies' participation in digital assets, a gap the SFC is actively examining.

Huajian Medical's decision to pivot toward blockchain and AI integration marks a significant strategic shift for the firm, which traditionally focuses on medical technology and diagnostics, the Coincu report observed. The company plans to build an AI algorithm platform to enhance asset valuation accuracy and improve transparency in its securitization processes, the Weex report added. Analysts suggest this move reflects a broader trend of traditional enterprises exploring blockchain technology, though regulatory hurdles remain a key barrier, Coincu noted.

Ethereum's price dynamics add another layer of complexity to the situation. While the cryptocurrency has seen a 1.17% rise in the past 24 hours, it has declined 12.84% over the last 30 days, trading at $3,900.92 as of November 2, 2025, according to Coincu. The Coincu research team also noted that Huajian's suspension underscores the risks of securitizing real-world assets on blockchain, particularly amid evolving regulatory scrutiny.

The SFC has also signaled potential rule changes to address gaps in crypto governance, though no specific thresholds for cryptocurrency holdings by listed companies currently exist, the TradingView report said. Meanwhile, the regulator is reviewing Hong Kong's dual-class share system to better accommodate tech firms while protecting minority shareholders, according to the same TradingView analysis.