Not so long ago, a South Korean cryptocurrency exchange called Zeniex released a statement to the general public noting that it is closing all services. This happened after the financial authorities of South Korean begun cracking down on unauthorized cryptocurrencies. The South Korean exchange has informed its clients to withdraw their cryptocurrencies before the end of service date.
Back in May of this year, Zeniex cryptocurrency exchange was launched. Up to six months later, this past Friday, 9th November it announced the termination of all services. The decision follows the investigation by South Korean financial authorities of the exchange’s cryptocurrency fund called Zxg Crypto Fund No. 1 (ZXG).
Zeniex stated 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 services will be difficult.”
In addition, the exchange also noted “It is with much regret to announce that all services of Zeniex will be terminated on November 23rd, 2018.” The exchange proceeded to inform its users that “All crypto assets except ZXG must be withdrawn before the end of service date,” adding that on Nov. 23 users will no longer be able to check their crypto assets held at the exchange.
Also, the exchange announced the ending of Zxg Crypto Fund No. 1 that stopped trading. As stated in the announcement, the exchange and its partners Genesis Capital will return investors’ funds in ETH on the 12th of November.
The exchange wrote that the fund “was expected to be listed on crypto exchanges overseas.” The exchange acknowledged “With recent developing issues we believe that ZXG Crypto Fund No. 1 will have difficulties to operate smoothly with such current pressure from the financial authorities.”
This sad news happened not long after the financial regulators announced that it would be cracking down on unauthorized cryptocurrency funds. Zxg Crypto Fund No. 1, launched in September, became the center of the regulators’ focus as it is “the first virtual currency fund in Korea,” Business Korea wrote.
Markets Act has recently launched an investigation of the fund and the company. Before the investigation by the authorities, the exchange had planned to launch another crypto fund, however, it was canceled.
Finally, the South Korean Financial Services Commission (FSC) was cited by a news outlet saying “The virtual currency fund is likely to be in violation of the capital markets law and the company is not an investment company is not an investment company accredited by the financial authorities.”