As news broke about North Korea’s ban on the initial coin offering (ICO) funding model, the ether-US dollar (ETH/USD) exchange rate fell to $278. During the Asian trading session, word broke that the South Korean Financial Service Commission would ban “all forms” of ICOs. A paralleled response, as China just four weeks ago made ICOs illegal.
The Commission’s official statement states the bans were made because “market funds are being pushed into a non-productive speculative direction”. It also notes that they’ve discovered that cryptocurrencies have been used in various crimes, may be used as a means to launder money and some ICOs may be frauds.
Currently, the market’s reaction to South Korea’s news has been tepid. Succeeding China’s ban, ether dropped around $200 in its prices.
Moving forward, any reports from other regions regulators could decrease ether recovery efforts. This means while Ether’s recovery from $278 to $297 is promising, price action analysis indicated it’s not out of the woods just yet.
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