Tokyo Stock Exchange considers curbs on listed firms hoarding crypto assets

Japan Exchange Group (JPX), operator of the Tokyo Stock Exchange, is examining new measures to rein in a rise in listed companies that accumulate large cryptocurrency holdings as part of their treasury strategy, according to people familiar with the discussions. Regulators are becoming concerned that the growing number of digital-asset treasury (DAT) firms poses governance and investor-protection risks, particularly after sharp drops in several such companies’ share prices.JPX is considering stricter application of rules designed to prevent backdoor listings and may require some firms to undergo fresh audits, though no decisions have been finalised. The exchange has already pushed back on several companies’ crypto-purchase plans: since September, three listed firms have halted their digital-asset buying after JPX warned that turning crypto accumulation into a business model could limit their ability to raise funds.While listed companies are not prohibited from holding cryptocurrencies, JPX said it is monitoring firms that raise red flags from a risk or governance perspective, with the explicit goal of protecting shareholders. The potential tightening comes amid growing concern that retail investors have been exposed to unexpected losses linked to volatile DAT-related stocks.
This article was written by Eamonn Sheridan at investinglive.com.

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