Cybersecurity
Cryptocurrencies Drop as South Korea Bans ICOs, Margin Trading
- Margin trading prohibition extends to bitcoin, ethereum
- Ban is effective immediately following rising fraud activity
The Wild Swings in Cryptocurrency Investments
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Ethereum and bitcoin dropped after South Korea banned domestic initial coin offerings and margin trading in cryptocurrencies.
The Financial Services Commission in Seoul said all forms of ICOs are prohibited in the country, including projects that share profits, rights, dividends, and other "coin-style" offerings, according to a statement. The commission also banned the practice of loaning funds to trade currencies including bitcoin and ethereum, according to an official who clarified the statement. Ethereum fell about 6 percent.