KOSDAQ-listed crypto firms face delisting risk on new rules

KOSDAQ-listed companies with digital asset treasuries (DAT) that profit from virtual asset investments are facing delisting risks ahead of revised listing regulations set to take effect on July 1, the Chosun Ilbo reported. Under the new rules, which begin in the second half of the year, stocks whose price or market capitalization falls below a set standard for 30 consecutive trading days will be designated as administrative issues. After being designated, they are given a 90-trading-day recovery period, but delisting is confirmed if they fail to meet the standard for another 45 consecutive days. The assessment is that with virtual asset prices falling in both the first and second quarters, it has become difficult for DAT companies to maintain their listings as they must report large-scale valuation losses.