JPX explores tighter rules for crypto-focused companies as Metaplanet defends its governance practices
Japan’s DAT Boom Faces Regulatory Pushback
Japan’s top stock exchange operator, the Japan Exchange Group (JPX), is reportedly considering stricter oversight of companies that pivot their business models toward holding Bitcoin and other cryptocurrencies. The move comes in response to steep losses suffered by digital-asset treasury (DAT) firms, which have attracted retail investors seeking crypto exposure through traditional equities.
According to sources cited by Bloomberg, JPX is exploring new audit requirements and tougher backdoor-listing assessments aimed at firms that shift their focus to large-scale crypto accumulation. If implemented, the rules could reshape Japan’s DAT landscape, one of the most active markets for publicly listed Bitcoin-holding firms.
DAT Stocks Plunge Amid Bitcoin Volatility
The potential crackdown follows a dramatic downturn in several high-profile DAT stocks. Metaplanet, Japan’s largest Bitcoin-holding firm with over 30,000 BTC, saw its share price plummet 82% from a yearly high of $15.35 on May 21 to $2.66 at the time of writing.
Other firms have faced similar declines. Convano, a nail salon franchiser that pivoted into Bitcoin investment earlier this year, is now trading at $0.79, down 61% from its August peak of $2.05. Data from BitcoinTreasuries.net shows the company’s BTC investment is down roughly 11%, highlighting the risks of treasury-heavy business strategies in volatile markets.
Regulators Target Backdoor Listings and Risky Pivots
JPX’s focus appears to center on preventing “backdoor listings”, where companies bypass standard initial public offering (IPO) procedures by acquiring already-listed shell firms. While these practices are already prohibited in Japan, extending the rules to DAT pivots would close a regulatory gap that some firms have allegedly exploited to rebrand as Bitcoin investment vehicles.
If enacted, such restrictions could slow or halt the wave of new DAT listings that have emerged as Bitcoin prices surged above $100,000, marking a major shift in how Japan approaches crypto-related equities.
Metaplanet CEO Responds: “We Followed Proper Governance”
In response to the reports, Metaplanet CEO Simon Gerovich defended the company’s governance record, saying JPX’s concerns are aimed at firms engaging in improper listing practices — not at Metaplanet.
“At Metaplanet, we have held five shareholder meetings over the past two years, securing approval for all critical matters,” Gerovich said on X. He added that the company had amended its articles of incorporation and increased authorized shares to fund Bitcoin acquisitions, all under the same management team that existed before its strategic pivot.
Gerovich emphasized that Metaplanet’s transition was fully transparent and shareholder-approved, distancing the company from others accused of sidestepping regulatory procedures.
As Japan’s DAT market matures, regulators are walking a fine line between encouraging digital-asset innovation and protecting investors from speculative risks. JPX’s potential crackdown underscores a growing concern that unchecked Bitcoin accumulation by listed firms could distort market integrity and expose retail investors to heightened volatility.
If formalized, the new restrictions may reshape the future of corporate Bitcoin adoption in Japan, forcing firms to prove stronger governance and compliance before turning their balance sheets into crypto treasuries.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.