Tokyo Stock Exchange tightens oversight of crypto companies

The Japan Exchange Group (JPX) is considering measures to limit the growing number of publicly listed companies that hold digital tokens as treasury assets. Among the proposed steps are stricter listing rules and additional screening of companies shifting into the crypto sector.

According to Bloomberg, the operator of the Tokyo Stock Exchange, Japan Exchange Group (JPX), is reviewing possible measures to curb the increase in public companies storing digital tokens as treasury holdings.

Potential steps include tightening listing requirements, revising rules around backdoor listings, and conducting additional checks on companies transitioning into cryptocurrency-related businesses. These measures aim to protect investor interests.

Since September, JPX has already rejected three Japanese companies that planned to use digital assets as their primary store of value, warning that such a strategy could limit their ability to raise capital.

The regulator is closely monitoring such companies from the standpoint of corporate governance and shareholder protection. However, there is still no direct ban on public companies holding cryptocurrency.

JPX’s cautious stance is linked to the high volatility of the stock prices of such issuers. Sharp fluctuations in digital asset prices have already caused significant losses among retail investors.

Japan currently leads Asia in the number of publicly listed companies holding bitcoin — there are 14 of them. Among them is Metaplanet, whose shares trade in Tokyo. The company holds over 30,000 BTC, but its stock has fallen more than 70% since June.

In October, Japan amended the Financial Instruments and Exchange Act (FIEA) to classify cryptocurrencies as securities.

See also: "Polymarket platform resumes operations in the US in closed beta mode"

#Japan #Crypto exchanges

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