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Bitcoin Updates: Japan Strives to Foster Crypto Advancements While Ensuring Investor Protection Amid DATs Decline

Bitcoin Updates: Japan Strives to Foster Crypto Advancements While Ensuring Investor Protection Amid DATs Decline

Bitget-RWA2025/11/13 08:42
By:Bitget-RWA

- Japan Exchange Group (JPX) plans stricter rules for digital-asset treasury (DAT) firms amid volatile stock collapses, including enhanced audits and backdoor listing restrictions. - Metaplanet and Convano, major DATs holding thousands of BTC, have lost over 60% of their value, reflecting global market instability linked to crypto-heavy strategies. - Regulators warn DATs pose risks to retail investors due to reliance on volatile assets, while Japan balances innovation incentives with governance safeguards

The Japan Exchange Group (JPX) is facing mounting calls to curb the swift growth of digital-asset treasury (DAT) firms, as fluctuating stock prices and investor setbacks draw increased regulatory attention. The operator of the Tokyo Stock Exchange is said to be weighing tighter enforcement of backdoor listing regulations and requiring mandatory audits for companies shifting toward significant crypto holdings,

. These steps are intended to mitigate risks associated with the recent downturn in DAT-related stocks, with from its high in mid-June.

The new regulations would broaden current restrictions on backdoor listings—which let private firms sidestep standard IPO processes by purchasing already-listed companies—to include those changing their main business to crypto.

to acquire cryptocurrencies, citing worries that such moves might hinder their ability to raise capital. does not have an outright prohibition on crypto accumulation, but has said it is “keeping an eye on companies that present risk and governance issues” .

Bitcoin Updates: Japan Strives to Foster Crypto Advancements While Ensuring Investor Protection Amid DATs Decline image 0
Regulatory resistance is intensifying as Japan’s DAT industry faces a critical moment. in 2024, now possesses 30,000 BTC but has experienced a share price drop of . Likewise, Convano Inc., a nail salon franchise operator aiming to collect 21,000 BTC, has seen its stock lose since peaking in August. These losses reflect a worldwide pattern, with U.S.-based Strategy Inc.—modeled after DATs—seeing its shares decline by 50% since mid-July .

The measures JPX is considering are in line with a broader trend of caution in the region. While Japan is home to 14 publicly traded

holding companies—the highest number in Asia—Hong Kong and other Asia-Pacific exchanges have been reluctant to approve new DAT listings . The Tokyo exchange’s emphasis on audits and governance highlights transparency concerns, especially after companies like Metaplanet used shareholder votes to pivot to crypto without fully outlining long-term risks .

Industry specialists caution that without more robust regulation, DATs could increase market volatility. “The DAT structure depends on highly volatile assets and generates minimal revenue,” one analyst observed,

during sharp market corrections. Metaplanet CEO Simon Gerovich has defended the company’s governance, pointing out that five shareholder meetings have been held in two years to approve Bitcoin strategies .

The ongoing regulatory discussion highlights Japan’s challenge in balancing innovation with investor protection. While DATs initially attracted interest as a hedge against yen depreciation, the sector’s recent troubles have revealed regulatory shortcomings. JPX’s current review could redefine Japan’s position as a leader in corporate crypto adoption, with potential effects on global markets. As the exchange considers its next moves, companies like Metaplanet must navigate both market uncertainty and stricter oversight

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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