Exchanges

A South Korean crypto exchange has succumbed to regulatory pressure

Zeniex, a South Korean crypto exchange has succumbed to regulatory pressure from the government and will permanently close its doors on November 23 according to an announcement on its website.

The exchange said that:

“With recent issues regarding ZXG, we have gone through great deliberation both internally and externally. As a result, we have come to the conclusion that continuing to operate such service will be difficult. It is with much regret to announce that all services of Zeniex will be terminated on November 23, 2018.”

Three days ago, the exchange halted cryptocurrency trading activities on its platform and has requested its customers to take advantage of the remaining time to withdraw their virtual currencies since the exchange will be unavailable after the deadline.

The closure comes in the wake of heightened regulatory pressure from the government as it seeks to drive away unauthorized cryptocurrency trading platforms.

Apart from the trading of cryptos and other related services, its crypto fund, ZXG Crypto Fund will also not be available.

The regulatory pressure from the government also made it impossible for Zeniex’s native token, ZXG, to be listed on international virtual currency exchanges.

In a separate notice, the exchange noted that:

“ZXG was expected to be listed on crypto-exchanges overseas in order to continue the management of the fund. However, with recent developing issues, we believe that ZXG Crypto fund No 1. is and will have difficulties to operate smoothly with such current pressure from the financial authorities.”

The exchange will cooperate with its partner, Genesis Capital, to return the cost of ZXG with a matching amount of Ether (ETH) as from tomorrow, November 12th.

In the recent past, South Korea’s financial watchdog, Financial Services Commission (FSC), has warned investors against being associated with unregistered crypto platforms.

Since the South Korean crypto exchange has succumbed to regulatory pressure, do you think the FSC is shifting its weight on investor protection?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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