The Japan Exchange Group (JPX) is considering measures to limit the growth of red-hot “digital-asset treasury” companies (DATs), Bloomberg reports.
The shares of Tokyo-based Metaplanet, one of the largest Bitcoin treasury firms, have plunged by 7%.
Potential measures
JPX is looking at Stricter application of backdoor listing rules that make it possible for private companies to go public via mergers or acquisitions without a standard IPO. JPX may prohibit companies from pivoting to crypto accumulation if they were initially listed as a traditional business.
Companies will also be required to undergo audits when they change their focus to crypto.
Notably, the report says that no official decision has been made, and these are private discussions.
JPX has no formal ban on crypto accumulation by listed companies, but it is currently monitoring potential risks.
Metplanet’s plunge
Metaplanet famously pivoted from hotels to crypto in 2024, copying the playbook of Michael Saylor’s Strategy (Microstrategy).
The company managed to accumulate a total of 30,000 Bitcoins while aiming for as many as 210,000 coins.
After stealing the show with its massive rally in 2024, the company’s shares have now collapsed by roughly 75% from the mid-June peak.
The regulatory pushback will further complicate Metaplent’s predicament.
Since September, three listed companies have paused plans to buy crypto because choosing crypto as a business strategy could limit their fundraising, the Bloomberg report says.