South Korean’s News1 has reported that the country’s Financial Service Commission will be banning initial coin offerings on Friday.

This is a week following China’s similar announcement on the banning of ICOs.

The South Korean statement said “stern penalties” will be issues on any parties involved in ICOs and didn’t elaborate more.

South Korean exchanges have recently seen a dynamic rise in trading since August. Following the release of Bitcoin Cash (BCH), South Korean exchanges led the surge and accounted for $1.7 billion of trade volume. During the early Bitcoin Cash peak, the South Korean won contributed to almost half of traded volume.

Markets React

Ethereum and Bitcoin had just seemed to shake of news of China and JPMorgan and had seen some traction. Yet following the news from South Korea the crypto markets did react. At press time, Ethereum dropped 10% from a weeks high of $315 to a $280 with a bounce back recover.

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