The Tokyo Stock Exchange operator is exploring stricter enforcement of listing rules and audits to protect investors.
The heat is rising on digital asset treasuries in the Far East.
Japan Exchange Group (JPX), which operates the Tokyo Stock Exchange, is considering measures to curb the growth of listed companies that hoard digital tokens as treasury assets, according to Bloomberg.
The bourse is exploring actions such as stricter enforcement of backdoor listing rules and fresh audits for firms tilting to crypto in a bid to protect investor interest.
Since September. JPX has already pushed back against three Japanese companies planning to evolve as digital asset treasuries, warning of fundraising restrictions if they pursue crypto accumulation as a core strategy.
The operator is closely monitoring such firms from a governance and shareholder protection perspective, even though it doesn’t have specific regulations banning crypto hoarding by listed firms.
JPX’s caution toward digital asset treasuries stems from the volatile boom-and-bust swings in these stocks, which have inflicted significant losses on retail investors.
Japan leads Asia with 14 publicly listed bitcoin-holding companies, including the Tokyo-listed Metaplanet, which boasts a coin stash of over 30,000 BTC. Shares in Metaplanet have crashed over 70% from their June peak.
