South Korea gives another blow to cryptocurrencies

Another hard blow to the cryptocurrency market that comes from the Asian territory. At the beginning of this month, it was China that banned ICOs, the method of raising funds through crypto currencies, and now it is the turn of South Korea.

South Korea bans ICOs in its market

The Central Bank of China became the first to ban ICOs, also known as token sales, in a move earlier this month, and Korea is now following suit.

Companies around the world have raised more than $ 1.8 billion this year through ICOs, implying the sale of a new Ethereum- based minted crypto currency to finance product development. This space is not regulated like traditional financial markets and that has drawn widespread criticism for its potential to mislead investors, who do not need to be accredited in any way.

That is why China and South Korea prefer to heal themselves in health and prohibit this type of movements, which is slowing the rise that some crypto currencies were getting, such as Bitcoin or Ethereum.

Cryptocurrency down

Not being a regulated market, cryptocurrencies can lead to fraudulent maneuvers. Frankly, the bans seem to make sense until methods are found to make cryptocurrency trading and investments much more reliable than they are now.

As can be seen in the graph above, this measure of South Korea had an impact on the value of Bitcoin, which dropped its price more than $ 100 since September 28.

Source: techcrunch