Crypto On The Balance Sheet
The Hidden Risk Compliance Teams Can’t Afford to Miss
The total market capitalization of publicly traded companies holding cryptocurrency has surged to $160 billion, up from roughly $90 billion at the start of 2024, according to a recent report in The Block. This explosive growth reflects more than a crypto comeback. It signals a shift in corporate treasury strategy, as companies increasingly add digital assets to their balance sheets to attract investors and diversify holdings.
But behind the headlines and stock price surges lies a hidden risk. As digital assets gain legitimacy, many firms are integrating them without updating their compliance infrastructure. This creates an imbalance – financial innovation on one side, and oversight blind spots on the other.
Hidden risks to consider:
- Unmonitored insider access to material crypto holdings or price-sensitive information
- Incomplete surveillance of both the company’s crypto portfolio and employee trading across exchanges and wallets becomes even more challenging with the introduction of digital tokens that mirror the value of well-known securities
- Outdated conflict-of-interest and private investment disclosures that do not cover digital assets
- Gaps in reporting and audit trails that could trigger regulatory action
Another concern is that crypto treasury decisions might not be subject to the same compliance rigor as employee or firm trading. Treasury teams can act swiftly and outside established compliance protocols, and without proper oversight, these high-level decisions risk inviting regulatory scrutiny and damaging the company’s reputation.
To stay ahead, compliance officers must:
- Expand trading surveillance and pre-clearance systems to include digital assets
- Update policies and declarations to capture crypto-related activity
- Coordinate across compliance, legal, and treasury to ensure consistent oversight
- Monitor evolving global regulatory expectations around transparency and custody
How StarCompliance Can Help
As more public companies move digital assets onto their balance sheets, and market capitalization tied to crypto-treasury holdings reaches record levels, the compliance landscape is shifting fast. What began as a fringe investment is now becoming a strategic treasury move, and with it comes new exposure to regulatory risk.
StarCompliance (Star) is helping firms stay ahead of this evolving risk environment. Our Crypto Dealing Compliance Software is purpose-built to give compliance teams the visibility and control they need as digital assets become part of both corporate and employee financial strategies.
Star’s platform offers:
- Pre-trade clearance to review and approve employee crypto transactions before execution
- Post-trade monitoring that automatically flags suspicious activity across more than 100 exchanges and 30 blockchains, eliminating the need for manual review
- Advanced reporting and analytics to detect patterns, flag risk indicators, and support audit readiness
With these capabilities, compliance officers can establish strong internal controls, uphold regulatory expectations, and protect their organizations’ reputations as digital assets become more mainstream.
Crypto Regulations Decoded
