In the short-term, the effects are quite severe.
South Korea being such a big cryptocurrency market, means that government regulatory decisions result in big impacts on the crypto market globally.
In the long-run, it’s harder to say but the market will most likely adjust to this.
We could see this happening amid all the rumoured reports of regulatory bans during January. During the peak of all this news coming to the surface, the total market capitalization of all coins dropped by 40 percent in one day (dubbed “Black Tuesday”).
However, shortly afterward, it started to climb back up again.
Given that speculation plays a big role in the price of cryptocurrencies, any change in law or economic decisions made in major crypto hubs (such as South Korea) will always result in fluctuations and major price swings in the value of digital money worldwide.
But in all likelihood, it will climb back up to pre-crash levels and beyond, as we’ve seen with the China scares.