Japan Exchange Group weighs tighter oversight of listed crypto treasury firms: report

Japan Exchange Group (JPX), the operator of the Tokyo Stock Exchange, is exploring measures to tighten oversight of publicly traded companies that accumulate substantial cryptocurrency holdings, driven by concerns over volatility and losses in digital asset treasuries (DATs). Potential measures include a stricter interpretation of existing backdoor-listing rules and possibly requiring fresh audits for companies pivoting to large-scale crypto accumulation. JPX has reportedly warned three listed companies that their fundraising capacity could be limited if crypto acquisitions become their core business, leading them to pause accumulation plans. Currently, no explicit rules prevent listed firms from holding crypto reserves. This increased scrutiny follows sharp declines in DAT stocks, such as Metaplanet, whose shares have fallen significantly from their peak, despite the company asserting adherence to all legal and governance procedures.

(Source：The Block)