Korean Government Crackdown on Illegal Platforms Leads Zeniex to Terminate Its Services

Nov 11, 2018 at 19:12 Update Date :Nov 11, 2018 at 19:12 UTC

Zeniex, a crypto exchange of South Korea, announced that their services will be terminated due to the recent crackdown by the Korean government on the unauthorized platforms.

Zeniex, which was opened in May 2018, is a joint project of China and South Korea. Zeniex, in its recent post, mentioned that this all is happening due to the issues occurring nowadays. The firm is now on a decision that it will be difficult to operate the services anymore. On November 9, the trading regarding cryptocurrency has come to an end and other major services are scheduled to be terminated by November 23.

The users of Zeniex are asked to withdraw their amount in cryptocurrencies before the deadline as the services won’t be there after the deadline. Zeinex, in their official announcement, stated that their crypto fund Zxg Crypto Fund No. 1 is also to shut down permanently on November 23. This cryptocurrency has been a matter of investigation for the regulators.

Zeniex, in their press release, said;

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

Zeinex and the Chinese firm, which is in collaboration with Zeinex, scheduled to return the funds invested in ZXG in Ethereum on November 12. As per Business Korea, This scheduling came just after South Korea’s Financial Services Commission (FSC) gave warning to the investors in November regarding investing their money in illegal crypto exchanges and Initial Coin Offerings (ICOs).

A representative of Zeniex told Maeil Business Newspaper – which is the leading daily newspaper of business in South Korea, that the firm was not compelled to register because it generated less than 1 billion won, i.e. 884,500 United States Dollar. However, there was an allegation on the firm, citing a lack of ability to check whether the platform is working as it claimed it to be.

Back in early 2018, when there was a rumour spread that South Korea is planning to impose a ban on the cryptocurrency, however, later, the nation decided to put regulations on the area; banning forbidding minors, government officials from crypto trading, and anonymous trading.

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