South Korean DAT Companies at Risk of Delisting Amid Crypto Price Slump

Korean DAT companies, which have been profiting from cryptocurrency investments, are facing delisting risks due to plummeting crypto prices and tightened regulations.

The revised listing regulations in South Korea took effect on July 1, raising the threshold for stock retention and putting KOSDAQ-listed companies at risk of being removed from the exchange.

These DAT companies, such as BitPlanet, have been accumulating cryptocurrencies like Bitcoin with a long-term goal of holding 10,000. However, their model heavily relies on rising crypto prices.

The new delisting criteria are strict, requiring companies to meet both price and market capitalization thresholds simultaneously. If they fail to regain compliance for 45 consecutive trading days during the 90-trading-day grace period, they will be formally initiated into delisting proceedings.