South Korea tightens KOSDAQ rules for crypto firms

• South Korea's revised KOSDAQ listing rules will take effect on July 1, raising minimum market capitalisation requirements for listed companies.
• Several digital asset treasury companies, including Bitmaxs, Parataxis Ethereum and Bit Planet, face potential delisting risk if they fail to meet the new thresholds.
• The revised rules also prevent companies from avoiding delisting through capital reductions or share consolidations.

South Korea will implement revised KOSDAQ listing rules on July 1, introducing higher minimum market capitalisation requirements that could increase delisting risk for several listed companies with digital asset treasury strategies.

Bitmaxs currently has a market capitalisation of 13.1 billion won, below the new 20 billion won threshold for the second half of the year, while Parataxis Ethereum at 26.8 billion won and Bit Planet at 33.1 billion won remain below the higher 30 billion won requirement scheduled to take effect in 2027.

The revised framework also prevents listed companies from avoiding delisting through measures such as capital reductions or share consolidations, tightening compliance requirements for businesses that fail to satisfy market value standards.

The changes come as falling cryptocurrency prices and capital outflows from the KOSDAQ market have reduced valuations for several companies holding digital assets on their balance sheets.

Bitcoin (CRYPTO:BTC) has declined from its reported peak near US$120,000 last year to around US$50,000 in early May, contributing to significant unrealised losses for affected digital asset treasury companies.

Companies that remain below the required market capitalisation thresholds could begin formal delisting procedures as early as next January if their valuations do not recover.

The revised listing standards highlight South Korea's efforts to strengthen market quality while increasing pressure on smaller listed companies exposed to cryptocurrency price volatility.