Japan Exchange Group (JPX) is considering new restrictions on publicly listed companies that transition their core business into crypto accumulation, leading to potential changes in the digital-asset treasury market. This follows losses in Japan’s DATs, with Metaplanet’s shares dropping 82% from its YTD high. Convano also saw a 61% decrease in share value.

Applying backdoor listing rules to companies shifting into crypto accumulation would tighten Japan’s listing standards. Backdoor listings involve private companies acquiring listed shell companies to avoid traditional IPOs, a practice already prohibited by JPX. Extending this prohibition would close a regulatory gap potentially exploited by some DATs.

Metaplanet CEO Simon Gerovich refuted claims that Bitcoin-accumulating firms disregarded governance rules. He stated that Metaplanet held multiple shareholder meetings and followed formal governance processes when transitioning into digital assets. This response comes after reports of potential restrictions by JPX on companies pivoting into crypto-holding vehicles.

Read more at Cointelegraph: JPX Weighs Crackdown on Crypto Treasury Firms