Domestic Cryptocurrency Businesses Face Survival Crisis Due to Debt Ratio Regulation

Starting next month, over half of domestic cryptocurrency businesses will fall below the standards due to the implementation of debt ratio regulations. The new regulation aims to prevent market entry by businesses with weak financial health, but it has become a survival test for small businesses amid an industry downturn. As of the end of last year, 12 out of 24 cryptocurrency businesses had a debt ratio exceeding 200%, and many of these are in a state of capital impairment. It is estimated that 57% of the total 28 cryptocurrency businesses will fall below the standards. The regulation will take effect on August 20, requiring both businesses and major shareholders to meet a debt ratio of 200% or less. Although the financial authorities provided a one-year preparation period, the handling of businesses that do not meet the standards remains uncertain. Four exchanges, including Upbit and Bithumb, appear to meet the criteria. However, many small businesses are struggling to improve their financial structures. With poor cryptocurrency trading performance and inadequate regulatory adjustments, conditions for revenue growth are lacking, and attracting external investment is seen as the only solution. As a result, the cryptocurrency industry may be restructured around larger businesses.