The Chinese government intends to further regulate the crypto economy, according to reports from Yicai, the Chinese financial news agency.

The report indicates that the government has only just begun to regulate cryptocurrencies and ICOs, after Monday’s ban on ICOs.

The news of the ban left many ICO companies seeking to return money to investors in order to remain government compliant. Many ICOs canceled, while some continued unfazed.

The announcement cited sources close to financial decision makers within the government who indicated that the ban was just the tip of the proverbial iceberg regarding regulations on cryptocurrencies and their spin-offs.

Markets recoil

The cryptocurrency markets responded to the news rapidly, with huge sell-offs in Ethereum (down 15 percent on the week) and other coins linked to ICOs. Chinese cryptos also lost value, with NEO dropping as much as 30 percent on huge volumes.

Other countries have also promised increased regulation. South Korea recently stated its intention to regulate the cryptocurrency industry, and may also move to ban ICOs. The news only compounds the questions regarding cryptocurrency values and stability, given their lack of government sponsorship and approval.