• JPX considers stricter rules for companies pivoting to cryptocurrency as their main business.
• Metaplanet’s stock drops 75%, despite holding over 30,000 Bitcoin, raising investor concerns.
• Japan’s crypto policies differ from Hong Kong, India, and Australia, allowing 14 Bitcoin firms to list.

Japan Exchange Group Inc. (JPX), the operator of the Tokyo Stock Exchange, is exploring stricter regulations for companies that focus on holding cryptocurrencies. This review follows a sharp decline in the stocks of digital-asset treasury (DAT) firms. The losses have raised concerns about governance and the protection of investor interests.

Bloomberg reports that Stricter rules of backdoor listing are one of the possible steps. In this arrangement, a company that shifts to cryptocurrency as its main business would be considered a new listing. The company would in turn have to seek new approvals and new audits. There is still debate on this measure, but no conclusion has been reached yet.

At least three listed firms, after September, have been advised by JPX to reduce or postpone plans to purchase significant volumes of crypto. Sources reported that JPX had cautioned these companies that it might have restricted capacity to fund its operations in the market of raising funds in case they made such purchases. This is among the steps that JPX is taking to cushion the investors against the dangers of speculative crypto investments.

JPX Focuses on Governance as Crypto Firms Face Market Decline

Even though JPX has not prohibited companies that possess cryptocurrencies, it stated that it is closely monitoring those companies with greater sensitivities that could impact their governance. The exchange underscored that it was concerned with protecting the interests of shareholders and ensuring that digital assets are not subject to risky and speculative ventures by companies.

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The fall in the Japanese DAT stocks is an alarming factor. An example is Metaplanet Inc., which switched to the accumulation of Bitcoin instead of the hotel business last year. Although Metaplanet holds a large amount of Bitcoin, its value has decreased by over 75% since June after a significant prior increase. It is among the biggest corporate holders of Bitcoin since the company has more than 30,000 Bitcoin.

Metaplanet Expands Bitcoin Holdings After Shareholder Approval

Simon Gerovich, CEO of Metaplanet, justified the company’s actions by stating that it took all necessary steps to adopt Bitcoin. He emphasized that Metaplanet has conducted 5 shareholder meetings to agree on the significant changes, such as the change in the business strategy and the expansion of shares to buy Bitcoin.

Other firms, such as Convano Inc., have also taken the same direction. Convano expects to acquire 21,000 BTC by 2027 with a goal to raise 434 billion Yen ($3 billion). Nevertheless, its stock has fallen by 60% in the recent months following a deceleration in the crypto market and more critique by JPX.

This discussion in Japan is contrary to the strategy in other nations. Transactions in Hong Kong, India, and Australia have hampered the capacity of a firm to concentrate on the digital holdings alone. However, Japan has enabled 14 firms, which buy Bitcoin, to list the largest in Asia-Pacific.

The increasing examination is a sign that Japan can deviate to a more conservative model of regulating crypto holdings by listed companies. This would bring about stricter laws and affect the way firms utilize the stock market to engage in speculative crypto investments.

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