Japan’s financial regulators are intensifying scrutiny on publicly traded companies that have pivoted to holding large cryptocurrency reserves as part of their corporate treasury strategies—commonly known as Digital Asset Treasury (DAT) firms.

This move, reported widely on November 13, 2025, comes amid a boom-and-bust cycle in the sector, where firms raised approximately $15 billion through private placements between April and November 2025, only for share prices to plummet due to post-lockup sell-offs and crypto market volatility.

The Japan Exchange Group (JPX), which operates the Tokyo Stock Exchange, is leading the effort to implement additional safeguards, focusing on investor protection, governance, and risk management.

Several DAT firms, including high-profile players like Metaplanet Inc. Japan’s largest public Bitcoin holder with 30,823 BTC, have experienced dramatic share declines. Metaplanet’s stock dropped over 75% from its June 2025 highs after an initial 420% surge, while Convano Inc. fell nearly 60%.

These swings have exposed retail investors to excessive risks tied to crypto’s price fluctuations. Japan now hosts 14 publicly listed Bitcoin-holding companies—the most in Asia—often created via mergers or business pivots rather than traditional IPOs.

This has raised concerns about “backdoor listings,” where firms bypass rigorous public offering processes to quickly adopt crypto-heavy strategies. The proposals align with broader Asia-Pacific trends. Hong Kong Exchanges & Clearing Limited blocked at least five similar listings in October 2025, while Australia and India have imposed caps on crypto allocations in corporate treasuries.

Proposed Regulatory MeasuresJPX is evaluating a multi-pronged approach, though no final rules have been enacted. The focus is on closing loopholes while preserving Japan’s reputation as a crypto-friendly jurisdiction.

Extend bans on backdoor listings to prevent listed companies from pivoting to crypto treasuries without shareholder approval or full disclosure. This would treat such shifts similarly to prohibited shell company acquisitions.

Slows rapid DAT formation; requires more transparency in business model changes. Impose additional financial audits for firms with significant crypto exposure, including reviews of asset valuation, custody practices, and related-party transactions.

Enhanced reporting on risk management would also be required. Increases compliance costs but could boost investor confidence by addressing governance gaps. Since September 2025, JPX has already urged at least three firms to halt digital asset acquisitions during reviews. This could become a standard interim step for high-risk cases.

Provides regulators time to assess stability without outright bans. Integrate DAT strategies into existing securities rules under the Financial Instruments and Exchange Act (FIEA), potentially classifying certain crypto holdings as financial products with tighter insider trading and disclosure mandates.

Aligns with Japan’s 2025 updates, like reclassifying tokens as securities and introducing Crypto-Asset Intermediary Service Providers (CAISPs). These steps build on Japan’s established crypto framework, governed by the Payment Services Act (PSA) since 2017, which requires exchanges to segregate customer assets and adhere to AML/KYC standards.

The Financial Services Agency (FSA) oversees licensing, and self-regulatory bodies like the Japan Virtual and Crypto Assets Exchange Association (JVCEA) enforce industry rules.Industry Response and OutlookDAT advocates, including Metaplanet CEO Simon Gerovich, argue the sector complies with current laws and that transparency—not restriction—drives growth.

In a statement, Metaplanet emphasized it has faced no formal inquiries and views audits as opportunities for validation. Analysts suggest the regulations could stabilize the market without stifling innovation, potentially attracting more institutional investors by mitigating volatility risks.

Japan’s government remains committed to Web3 promotion, as outlined in the 2024 Web3 White Paper, aiming for a balanced ecosystem where crypto integrates responsibly into finance.If implemented, these rules could reshape Asia’s DAT landscape, positioning Japan as a leader in regulated crypto adoption rather than unchecked speculation.

Dromos Labs—the team behind both decentralized exchanges (DEXs)—announced the merger of Aerodrome on Base and Velodrome on Optimism’s Superchain into a single, next-generation protocol named Aero.

This move aims to consolidate liquidity, streamline governance, and expand across the Ethereum ecosystem, positioning Aero as a “unified trading platform for the entire onchain economy.”

The announcement has generated significant buzz in DeFi circles, with discussions highlighting its potential to rival giants like Uniswap by capturing fragmented liquidity in a more efficient, cross-chain setup.

Aero is slated for a full rollout in Q2 2026, initially deploying on Ethereum Mainnet and Circle’s new Layer 1 blockchain, Arc currently in testnet. It will also support existing chains like Base, Optimism, and the OP Superchain, with plans for further expansions.

The existing AERO (Aerodrome) and VELO (Velodrome) tokens will merge into a single AERO token, with no new minting or dilution. Allocation is based on each protocol’s revenue share:~94.5% to current AERO holders.

~5.5% to current VELO holders. The new AERO will represent a share of Aero’s overall revenue and growth, including fees from trading, liquidity provision, and new features. Aerodrome and Velodrome will remain functional temporarily but will no longer receive support after Aero’s launch, encouraging users to migrate seamlessly.

Aero introduces an advanced architecture called MetaDEX 03, which enhances efficiency and revenue capture: Slipstream V3: An improved automated market maker (AMM) with internal MEV auctions to reduce losses from arbitrage bots and generate extra revenue.

MetaSwaps: A cross-chain aggregator for seamless trading across EVM-compatible chains without bridges or wrapped tokens.

REV and AER Engines: REV captures diverse revenue streams (e.g., aggregator fees, bridging, token launches), while AER algorithmically optimizes LP rewards in real-time, potentially boosting value creation by 2.8x for token holders through lower emissions and higher yields.

Additional features include institutional-grade tools like fee rebates, KYC-verified pools, and an “Autopilot” for automated voting/compounding. Aero enters the market with strong fundamentals from its predecessors:Metric

Data from DeFiLlama shows Aerodrome as Base’s top DEX by volume and TVL 4th overall on Base, while Velodrome ranks 3rd on OP Mainnet. The merger addresses DeFi’s fragmentation by creating a single liquidity layer, with backtested projections estimating up to $294M in net value for AERO holders via mechanisms like the “Momentum Fund”.

Many view this as a “banger” upgrade, praising the focus on onchain composability, institutional adoption, and tokenomics without VC dilution. Posts highlight Aero’s potential to dominate Ethereum’s liquidity hubs, with easy token launches and organic reward systems.

Some Aerodrome community members expressed bearish views on the token allocation, leading to a ~16% dip in AERO price shortly after the announcement. VELO holders, however, benefit from integration into a much larger ecosystem.

The news coincides with Uniswap’s “UNIfication” proposal to activate its fee switch and burn UNI tokens, intensifying DEX competition. Aero’s cross-chain ambitions, including Arc’s permissioned features, could appeal to institutions seeking compliant onchain trading.

This merger marks a pivotal evolution for Dromos Labs’ “MetaDEX” vision, blending Aerodrome’s dominance on Base with Velodrome’s Superchain roots into a scalable, revenue-optimized powerhouse. If you’re holding AERO or VELO, monitor official migration guides as Q2 2026 approaches.