Yonhap News reported that more than half of Virtual Asset Service Providers (VASPs) are facing a survival crisis as they fail to meet the 'debt-to-equity ratio of 200% or less' standard, a new entry regulation to be introduced next month. According to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART) and the SME Status Information System on the 30th, as of the end of last year, 12 out of 24 operators whose financial status could be confirmed had a debt-to-equity ratio exceeding 200%. Although financial statements were not disclosed, it is estimated that up to 16 companies failed to meet the debt-to-equity ratio standard if four additional companies that were in a state of full capital impairment based on past quarterly reports are included. With the revision of the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information (Special Act), the debt-to-equity ratio standard will apply from the 20th of next month, but the financial authorities have decided to grant a one-year preparatory period. However, it is not yet specified whether companies will have to cease operations immediately if they fail to meet the requirements thereafter.
