The Tokyo Stock Exchange operator is exploring measures, including a stricter interpretation of existing backdoor-listing rules and potentially requiring companies to undergo fresh audits if they pivot into large-scale crypto accumulation, Bloomberg reported Thursday, citing sources familiar with the matter.

A backdoor listing lets a private company go public through a merger or acquisition rather than a traditional IPO. JPX already prohibits such practice and is considering extending the restriction to listed companies that pivot their core business toward crypto treasury strategies.

While no decisions have been finalized, three listed companies have recently paused plans to begin buying crypto following pushback from JPX, the report said. Those firms were warned that their fundraising capacity could be limited if they pursued crypto acquisitions as a core business model.

JPX currently has no explicit rules preventing listed firms from amassing crypto reserves. The Block has reached out to JPX for comment.

The increased scrutiny comes following sharp declines in DAT stocks. Shares of Tokyo-listed Metaplanet have fallen more than 79% from their June peak. The stock closed down 6.6% at 397 Japanese yen ($2.60) on Thursday, a steep drop from 1,895 yen on June 16.

Metaplanet, which launched its bitcoin accumulation strategy in April 2024, currently holds 30,823 BTC, making it the world's fourth-largest public corporate holder of bitcoin, according to BitcoinTreasuries data.

In response to the media report, Metaplanet said Thursday that it has not been subject to regulatory actions or investigations related to its business operations.

"With shareholder approval at both extraordinary and annual general meetings, we have adhered to all procedures deemed necessary under applicable laws and regulations, maintaining corporate governance as our highest priority," the company wrote.

Other Japanese DAT stocks also fell on Thursday. Shares of Convano Inc. closed down 11.5% today, while Bitcoin Japan Corporation dropped 16.2%.

[Bloomberg]