Yes they did, and it may be a contributing factor as well. I don't believe it will happen, though. Crypto is huge in S. Korea. Koreans have more money in Crypto then in their own stock market. The S. Korean government would be foolish to ban it. Instead, they will do the same thing most governments will do. They will force exchanges to gather personal information identifying their clients and thus removing some of the anonymity from the space, and allowing the government to tax the gains.

Those investors who just react to headlines without giving it any critical thought were probably moved by the headlines about the possible S. Korean ban, but experienced investors have seen the same scenario play out before, and I don't think they are selling off in this volume based on the rumor.

That's just my opinion, though. I could be completely wrong.