Japan Exchange Group is tightening its oversight of crypto treasury companies after major losses across the Digital Asset Treasury sector.
Japan Exchange Group (JPX), the operator of the Tokyo Stock Exchange and Osaka Exchange, is stepping up its oversight of companies that hold large amounts of crypto on their balance sheets.
The decision comes after months of volatility in the Digital Asset Treasury (DAT) sector and sharp declines in several listed crypto-focused firms.
According to industry insiders, JPX has already blocked three companies from listing after determining their business models relied too heavily on speculative crypto holdings.
Why Japan Is Tightening Control
The move comes after several publicly traded DAT companies suffered major losses as the crypto market cooled.
Japan has been one of Asia’s most active markets for Bitcoin treasury holdings with 14 listed firms currently owning digital assets. That number made it a regional leader in corporate crypto exposure.
However, it also exposed investors to severe swings in valuation.
👑👑👑
Japan Exchange Group considers restricting growth of listed digital-asset treasury firms – Bloomberg pic.twitter.com/vz1lKleJvs
— Upslope Capital (@UpslopeCapital) November 13, 2025
Over the past few months, Metaplanet Inc., one of Japan’s most prominent DAT companies saw its stock collapse by more than 75% from its June highs.
Earlier this year, its shares had surged over 400% as Bitcoin rose. The crash prompted regulators to question whether such extreme price swings could destabilise the market.
Since September, JPX has asked at least three companies to temporarily pause further digital asset purchases due to liquidity and capital-raising concerns.
The Digital Asset Treasury Boom and Its Decline
The Digital Asset Treasury model exploded in popularity this year. The trend was inspired by companies like Strategy. It used corporate funds to buy Bitcoin, and dozens of firms worldwide started to hold crypto as part of their treasury reserves.
The idea was to preserve value in the face of inflation and position companies for the “digital economy.”
However, that enthusiasm is now fading.
Bitcoin’s price, which soared past $125,000 earlier in the year recently dropped below $105,000. This downturn left many DAT companies with large unrealised losses and more than 50 firms now report paper losses on their crypto holdings.
Metaplanet’s Struggles Reflect the Sector’s Risks
Metaplanet continues to be one of the most visible examples of Japan’s DAT problem. The company once drew comparisons to MicroStrategy due to its large Bitcoin holdings and bullish strategy.
It currently owns over 30,000 BTC worth about $3.5 billion. Despite its confidence in the long-term outlook for Bitcoin, the company has faced some severe market pressure.
After its share price collapsed, Metaplanet secured a $100 million loan backed by its Bitcoin reserves. The company says it plans to continue buying Bitcoin and even engage in options trading to manage its exposure.
Still, with its stock down 82% since May, investors are questioning how sustainable this strategy is in a market where crypto prices can fall very quickly.
Extremely grateful to our shareholders for their belief in Bitcoin and Metaplanet. Almost 0.2% of all Japanese are now shareholders of the company. Over the past few months, the number of Japanese shareholders has increased by 66%. pic.twitter.com/lpOJeY2Wtw
— Simon Gerovich (@gerovich) November 11, 2025
Metaplanet’s CEO, Simon Gerovich, defended the company’s governance practices. He said that all major decisions were approved in shareholder meetings and argued that JPX’s focus should be on firms attempting backdoor listings or making unapproved business pivots.