AFAIK they are only targeting ICOs and not exchanges which would be grim for our South Korean traders if that happened. Also, Bithumb still has a huge volume, and if their government really is persistent in shutting down these exchanges, the trade volume would be absolutely low as other traders situated in there have already moved their funds somewhere safe. A huge FUD, and it really helped in crashing the market, and I know for a fact that some traders cashed this one out.
Seems that most people focus on the FUD. Even there are news like this, it was just like an ordinary news, unlike when you post the other way round (eg. South Korea will Ban Crypto Exchanges), people give more attention/reaction/action to it.
Thea beauty of the English language--one word can change everything especially the news.