South Korea Bans All Domestic ICO’s; ETH and BTC Nosedives

South Korea regulators made a big announcement and banned all domestic and Korean ICO’s. Both ETH and BTC declined sharply after the release.

As the news1.kr news portal, the country will now have no ICO’s (Initial Coin offering).

According to the report published, Kim Yong-bum, vice chairman of the Financial Services Commission, stated and made it clear that there is a sharp rise in in demand for speculative receivables.

It has brought a lot of ICO and increased the chances of ICO fraud. Therefore, the financial regulators will block all credit-granting activities that lend trading funds.

The vice chairman of the Financial Services Commission was speaking at the opening ceremony of the public-private consultation meeting held at the Seoul Government Complex in Jongno-gu.

They categorially stated that Financial Supervisory Service will stop all types of ICOs in Korea. They used the examples of China and the United States.

We all know China recently banned all ICOs and then stopped bitcoin exchanges. The US and Singapore also recently gave strict guidelines and strengthened ICO-related regulatory measures.

In these lines, the Financial Supervisory Service is also establishing a regulatory framework to punish the use of virtual currencies if used in Initial Coin offering under the securities issuance in violation of the Capital Market Act.

South Korea’s ICO Ban Ignited Downsides in ETH/USD and BTC/USD

As soon as the news hit the wires that South Korea will now have no ICO’s, the price of Ethereum and bitcoin were down sharply.

ETH/USD was down and out and was seen trading from well above $300 to $280. BTC/USD also declined sharply and moved below the $4100 support. The price is now approaching the $4000 support and might continue to decline in the short to medium term.

Trade safe traders and stay away from hype and false rumors while trading.

Cheers!