Japan’s largest stock-exchange operator weighs new restrictions on publicly listed firms that pivot their core enterprise into shopping for and holding crypto, signaling a possible shift in one of the vital lively markets for digital-asset treasury (DAT) corporations.
Citing nameless sources aware of inside deliberations, Bloomberg reported that Japan Trade Group (JPX) is exploring stricter scrutiny for firms that shift their core enterprise into large-scale crypto accumulation. This consists of including recent audit necessities and making use of backdoor-listing guidelines to such firms.
The transfer comes after a wave of losses hit Japan’s DATs, lots of which attracted retail buyers earlier this yr. Metaplanet, Japan’s largest DAT, holding over 30,000 Bitcoin (BTC), noticed its shares fall from a year-to-date (YTD) excessive of $15.35 on Might 21 to $2.66 on the time of writing. This marked an 82% drop from its highest worth this yr.
Japanese nail salon franchiser Convano, which noticed a breakout efficiency in August, now trades at about $0.79 per share, a 61% drop from its excessive of $2.05 on Aug. 21. BitcoinTreasuries.NET knowledge confirmed that the corporate is down practically 11% on its BTC funding.
Backdoor itemizing guidelines would fill a regulatory hole
Making use of backdoor itemizing guidelines to firms pivoting into crypto accumulation would mark a big tightening of Japan’s itemizing requirements.
Backdoor listings happen when a personal firm acquires an already listed shell firm to bypass the normal preliminary public providing (IPO) route, and JPX already prohibits such maneuvers.
Extending the prohibition to listed corporations that shift into crypto-holding automobiles would shut a regulatory hole that some DATs could have exploited to evolve their enterprise fashions.
If JPX formally restricts such pivots, it may gradual or halt the itemizing pipeline for brand spanking new DATs.
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Metaplanet boss highlights governance steps in response to JPX report
Metaplanet CEO Simon Gerovich pushed again towards the implication that Bitcoin-accumulating corporations could have sidestepped governance or disclosure guidelines.
In an X submit, Gerovich responded to the report, saying that JPX’s considerations are directed at firms suspected of conducting backdoor listings or pivoting into digital belongings with out correct shareholder approvals. He stated this doesn’t apply to Metaplanet.
“In distinction, at Metaplanet we have now held 5 shareholder conferences over the previous two years (4 extraordinary basic conferences and one annual assembly), securing shareholder approval for all vital issues.”
He added that additionally they amended the corporate’s articles of incorporation and elevated licensed shares to fund BTC purchases. He stated that the corporate adhered to formal governance processes beneath the identical administration crew that had led the corporate previous to the pivot.
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