Japan Exchange Group may require new audits of crypto-rich companies

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Japan Exchange Group is considering new oversight of listed companies that hold large amounts of cryptocurrencies, which could include new audits.
Three companies have temporarily suspended their accumulation of cryptocurrencies after JPX warned that funding may be restricted if cryptocurrencies become central.
Metaplanet, which currently holds 30,823 bitcoins, says it is following all rules, but analysts expect regulatory scrutiny of companies with large exposures to cryptocurrencies to increase.

Japan Exchange Group is considering stricter supervisory measures for listed companies that hold large amounts of cryptocurrencies, Bloomberg reported, citing sources familiar with the matter.

The operator of the Tokyo Stock Exchange is considering measures that could include requiring companies to undergo new audits if they shift their operations toward large-scale cryptocurrency accumulation, the people said. The exchange may also apply stricter interpretations of existing backdoor listing rules to companies that employ crypto treasury strategies, according to the report.

The review follows concerns about volatility and losses at the digital asset treasury firm, people familiar with the matter told Bloomberg.

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Officials say no formal decision has been made yet. Sources said three listed companies recently suspended their plans to buy cryptocurrencies following a warning from JPX that their ability to raise capital could be limited if the accumulation of digital assets became a central part of business operations.

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The exchange currently has no clear rules preventing listed companies from accumulating crypto reserves.

The regulatory review comes after digital asset treasury stocks plunged. Metaplanet started its Bitcoin accumulation strategy in April 2024 and currently holds 30,823 Bitcoins, making it the world’s fourth largest public company Bitcoin holder, according to company data.

Metaplanet said it does not face any regulatory action and complies with all legal and governance procedures.

Market analysts noted that the increased regulatory attention reflects broader scrutiny of crypto exposures in listed companies.

read more: Metaplanet announces third quarter financial results, records net profit of 12.7 billion yen