Following Government crackdown on unauthorized crypto-based platforms, Zeniex one of South Korea’s crypto exchange has concluded plans to terminate its activities. This was made known by the company on Friday.
Having launched on May 2018 following a joint agreement by South Korea and China, the company has decided to halt its activities, revealing in a post that due to “recent issues,” they have “come to the conclusion that continuing to operate such a service will be difficult.”
While all crypto related trading has so far been stopped, the exchange revealed that all other activities would be shut down on Nov. 23.
As per the announcement, the crypto exchange has asked customers to withdraw all their assets before the stipulated deadline as their services will no longer be available.
Similarly, in another announcement, the crypto exchange states that Zeinex cryptocurrency fund, Zxg Crypto Fund No. 1, which has for been subject to regulators investigation will equally be closing on Nov. 23. While the company had initially expected its token to be listed on other trading platforms, it later made a decision to shelve such a plan.
Per their press release, the company stated that, “We believe that ZXG Crypto fund No 1. will have difficulties to operate smoothly with such current pressure from the financial authorities.”
In line with the company’s stand on transparency, the crypto exchange and its partners will now return all funds invested in ZXG in Ethereum (ETH) starting from Monday.
According to reports, South Korea’s Financial Services Commission (FSC) which has been playing its watchdog role had in October warned investors about investing in unauthorized crypto exchanges and Initial Coin Offerings, stating that these projects have failed to protect investors from risks.
In a report by Business Korea, the local newspaper explained that the FSC was particular about the ZXG, stating that the company had never been registered by the Financial Supervisory Service as required by laws governing the country’s Capital Market.