JPX Eyes Stricter Rules for Crypto-Holding Companies Amid Losses

JPX is considering stricter rules for companies with large crypto holdings, including new audits and tighter listing standards, after DAT firms saw major stock declines. The move aims to protect investors and address market risks.

Japan Exchange Group (JPX) is considering stricter oversight and new regulations for publicly listed companies with significant cryptocurrency holdings. The move targets digital-asset treasury (DAT) firms, which have seen notable stock declines amid increased scrutiny. JPX is evaluating enhanced audit requirements and a stricter interpretation of backdoor-listing rules to address risks associated with firms shifting their core business to crypto accumulation. Several companies have paused crypto acquisition plans after JPX warned that aggressive crypto strategies could restrict their fundraising abilities. The regulatory focus aims to protect investors, ensure good governance, and address concerns over volatility and operational risks. While no final decisions have been made, these potential measures could slow the growth of DAT models and impact the broader crypto market in Japan. Exchanges across Asia are also increasing scrutiny of digital-asset treasury listings.