Japan Exchange Group is weighing new measures to curb the growth of listed digital-asset treasury companies, as losses from the recent hoarding boom raise investor protection concerns.
Bloomberg reported Thursday that the Tokyo Stock Exchange operator is considering stricter use of its backdoor listing rules and may require fresh audits for companies shifting into large crypto positions. They said no final decisions have been made.
Shares of crypto-hoarding names have tumbled after surging earlier this year, leaving retail buyers with steep paper losses. Strategy Inc., which built a Bitcoin trove worth about $66b, has seen its stock roughly halve since mid-July.
JPX does not have blanket rules against corporate crypto accumulation. A spokesperson reportedly said the bourse is monitoring companies that raise risk and governance concerns, intending to protect shareholders and investors.
Backdoor listings typically involve going public via a merger instead of a traditional IPO. JPX already bans such listings and is exploring whether to apply that prohibition to listed companies that pivot their core business to crypto accumulation, the people said.
Exchanges across Asia have grown wary. Hong Kong and other regional venues have resisted new digital-asset treasury listings, while Japan now counts 14 public Bitcoin buyers, the most in Asia, according to industry trackers.
