Japan Exchange to Curb Cryptocurrency Hoarding
Japan Exchange Group is exploring measures to curb cryptocurrency hoarding by listed companies. According to insiders, the Japan Exchange is considering tightening reverse takeover rules and mandating new audits for listed companies. No formal measures have been finalized. Since September, three publicly traded firms have paused crypto purchases under warnings that financing could be restricted if they pursue cryptocurrency hoarding as a strategy. This move addresses concerns over market stability and excessive corporate crypto accumulation. Traders should monitor updates closely. Any restrictions on cryptocurrency hoarding by listed companies may reduce demand and affect liquidity across crypto markets.
Bearish
Limiting cryptocurrency hoarding by listed companies is likely to reduce institutional demand, creating a bearish market signal. Corporate buying programs have been significant drivers of crypto price rallies. By tightening reverse takeover rules and enforcing new audits, the Japan Exchange may deter further large-scale purchases. A similar outcome occurred after China’s 2021 crypto crackdown, when regulatory restrictions on institutional participation led to sustained price declines. In the short term, reduced demand from publicly traded firms could increase selling pressure and cap bullish momentum. Over the long term, however, clearer regulations and oversight might stabilize the market by preventing speculative hoarding. Nonetheless, the immediate effect points to a bearish bias as major buyers pause or limit acquisitions.