In the year 2017, the startups in Korea were banned from using the cryptocurrencies or ICOs. South Korea’s financial regulators have banned all the companies in countries from associating themselves with cryptocurrency. In the month of December of the same year, Bitcoin has suddenly raised to fame as it was traded at its all-time best price. But this fame vanished in no time, and the value of BTC depreciated like never before.
This step has made a great impact on the process of bringing the cryptocurrencies to the mainstream. The industry analyst and founder of Grayscale investment have stated that the banning of ICOs is also another important reason for the reduced value of cryptocurrencies.
The South Korean ban on this ICOs has a lot of impact on the depreciated value of cryptocurrencies than you can imagine. According to the survey conducted in 2017, almost three out of ten Koreans have started investing in the cryptocurrencies. These investments have made South Korean Won the fourth largest fiat currency trading against BTC value.
That was the time when the Korean economy was weak, and the officials of that country were trying to bring new regulations. In such a situation, the cases about hacking and loss of cryptocurrencies started. The government thought that these ICOs are a threat to its country environment and hence banned it altogether. The ban of ICOs resulted in the speculations that all the digital currencies will be banned in the country. But the government has given an assurance that it will not ban the cryptocurrencies.
The country has imposed some serious regulations and even has watchdogs who always monitor the digital assets of the citizens.