South Korea’s cryptocurrency exchange Zeniex to terminate its services amid government crackdown on unauthorized platforms
Zeniex, a cryptocurrency exchange in South Korea, recently announced that its services will be terminated. This is due to a recent crackdown by government on various unauthorized platforms.
Zeniex – a joint project by South Korea and China opened in May 2018. The cryptocurrency exchange announced it on a post on Friday where it mentioned that action was taken due to “recent issues,” they have “come to the conclusion that continuing to operate such a service will be difficult.” The crypto trading has already been stopped on November 9. All other services is scheduled to be stopped on Nov. 23.
The customers of the exchange are being asked to withdraw all cryptocurrencies before the deadline, since the service will not be available post that. In another separate announcement, the exchange mentioned that Zeinex cryptocurrency fund Zxg Crypto Fund No. 1, is also closing on November 23. The crypto has previously been a subject to local regulator’s investigation,
According to the press release, “We believe that ZXG Crypto fund No 1. will have difficulties to operate smoothly with such current pressure from the financial authorities.”On Monday, November 12, Zeinex and its Chinese partner, Genesis Capital, is scheduled to return the funds invested in ZXG in Ethereum (ETH).
This came soon after South Korea’s Financial Services Commission (FSC) warned investors about putting their money in unauthorized cryptocurrency exchanges and Initial Coin Offerings (ICO), in late October. According to Business Korea,
Also, a representative of Zeniex, told Maeil Business Newspaper, South Korea’s main daily business newspaper that the exchange was not obliged to register since it had raised in total less than 1 billion won ($884,500). However, an investigation against the company was started by the FSC, ciiting a lack of ability to check whether the platform is working as it is claimed.
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Author: Pinaz Kazi