Pressure is mounting 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 exchange is exploring actions such as stricter enforcement of backdoor listing rules and new audits for companies that lean into cryptocurrencies in a bid to protect investors’ interests.
Since September. JPX has already rejected three Japanese companies that plan to evolve as digital asset treasuries, warning of restrictions on fundraising if they pursue cryptocurrency accumulation as a core strategy.
The operator is closely monitoring such companies from a governance and shareholder protection perspective, although it does not have specific regulations prohibiting hoarding of cryptocurrencies by publicly traded companies.
JPX’s caution toward digital asset treasuries is due to these stocks’ volatile boom-and-bust swings, which have inflicted significant losses on retail investors.
Japan leads Asia with 14 publicly traded bitcoin holding companies, including Tokyo-listed Metaplanet, which has a coin stash of more than 30,000 BTC. Metaplanet shares have plunged more than 70% from their June high.
