The proposed steps include tightening listing rules and additional scrutiny of companies entering the crypto sector.

According to Bloomberg, Japan Exchange Group (JPX), which operates the Tokyo Stock Exchange, is considering measures to curb the growth of public companies holding digital tokens as treasury assets.

Possible steps include tightening listing requirements, revising backdoor listing rules, and conducting additional scrutiny of companies transitioning to cryptocurrency businesses. These measures are aimed at protecting investor interests.

Since September, JPX has already rejected three Japanese companies planning to use digital assets as their primary means of store of value, warning that such a strategy could limit their ability to raise capital.

The regulator closely monitors such companies for corporate governance and shareholder protection. However, there are currently no direct bans on public companies holding cryptocurrency.

JPX's cautious stance is due to the high volatility of such issuers' shares. Sharp fluctuations in digital asset prices have already led to significant losses among retail investors.

Japan currently leads Asia in the number of public companies holding Bitcoin, with 14. Among them is Metaplanet, whose shares are traded in Tokyo. The company holds over 30,000 BTC, but its shares have fallen by more than 70% since June.

In October, Japan included cryptocurrencies in the Financial Instruments and Exchange Act (FIEA), classifying them as securities.