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JPX may require fresh audits for firms pivoting into large-scale crypto holdings.
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The exchange is reviewing rules to limit crypto-heavy corporate strategies.
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The move follows sharp declines in Japan’s digital asset treasury stocks.
Tighter Scrutiny for Crypto Treasury Firms
The Japan Exchange Group (JPX) is considering new oversight measures for listed companies accumulating large crypto holdings. Under the proposal, firms shifting into crypto-focused models may need to undergo new audits or face fundraising restrictions, Bloomberg reported.
Market Reaction and Recent Losses
The discussion follows a sharp downturn in digital asset treasury stocks. Shares of Metaplanet have dropped nearly 80% from their peak, though the company maintains it is in full regulatory compliance. Other DAT firms, like Convano Inc. and Bitcoin Japan Corp, also saw double-digit declines.
Regulators Seek Balance
While JPX has no direct restrictions on crypto reserves, officials aim to prevent backdoor listings and excessive risk-taking. The plan underscores Japan’s effort to balance innovation and investor protection as more firms adopt Bitcoin-based treasury strategies.
