South Korea’s crypto exchange Zeniex will soon terminate its services due to a recent government crackdown on unauthorized platforms

Zeniex, a relatively unknown South Korean cryptocurrency exchange, has announced that it will soon shut down due to the government’s stern action on unauthorized cryptocurrency exchanges.

The crypto exchange, a joint venture between South Korea and China that came into operation in May 2018, states in the announcement that due to “recent problems,” they “have arrived at a conclusion that it will be hard to continue operate such a service.”

Crypto-trading has stopped on November 9, all other services will be halted November23. Zeniex clients are advised to take out all their cryptocurrencies before the due date, because the service is not available any longer.

Additionally, the company states in a unconnected notice that Zeinex Cryptocurrency Fund ZXG Crypto Fund No. 1, which was a topic of scrutiny by domestic regulators in particular, is also shutting down on November 23.

The press release further states that the company had plans to list its ZXG token in global cryptocurrency exchanges, but then the choice was abandoned.

“We believe that ZXG Crypto fund No 1 will have difficulties to operate smoothly with such current pressure from the financial authorities.”

Zeinex and its Chinese partner, Genesis Capital, will return on Monday 12 November the funds invested in ZXG in Ethereum (ETH).

By the end of October, the Financial Services Commission of South Korea (FSC) cautioned against investing in unauthorized crypto exchanges and initial coin offerings (ICOs) since they do not safeguard investors against risks under Korean law.

As Business Korea, the domestic finance tabloid, clarified, the announcement particularly pointed to ZXG Crypto Fund No 1. The FSC emphasized that the company had under no circumstances been enrolled under the Capital Market Act of South Korea by the Financial Supervisory Service.

A spokesperson from Zeniex told Maeil Business daily, a South Korea’s tabloid, that the firm was not indebted to enroll because it had raised an amount lower than 1 billion won ($ 884,500). The FSC, however, started the scrutiny against the company, pointing to a lack of access to confirm whether the platform operates as mentioned.

Even though South Korea was rumored to enforce a tough ban on cryptography in early 2018, the country chose to regulate the sector as an alternative. The prohibition of anonymous trade, ban on trading by minors and government authorities and the levy on exchanges were some of the substantial measures declared by the government to have a hold over cryptorelated actions. As of late, local lawyers campaigned the government to clarify its position on cryptography and build a clear legitimate structure.

Also read: China -based Bitcoin mining giant Bitmain has sued an anonymous hacker for the alleged theft of crypto worth $5.5 million from Bitmain’s account on Binance in April

Source: https://www.cointrust.com/market-news/crypto-exchange-zeniex-of-south-korea-to-shut-down-operations