Cryptocurrency exchange Zeniex has announced that it is terminating all services after South Korea’s financial authorities started cracking down on unauthorized crypto funds. The exchange is asking its customers to withdraw their cryptocurrencies before the end-of-service date.
Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space
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.
In addition, the exchange announced the termination of Zxg Crypto Fund No. 1 which stopped trading on Nov. 9. The exchange and its partner, Genesis Capital, will return investors’ funds in ETH on Nov. 12, according to the announcement.
Noting that the fund “was expected to be listed on crypto exchanges overseas,” the exchange admitted:
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.
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.
The government believes that the fund is in violation of the country’s Capital Markets Act and has initiated an investigation of the fund and the company. Zeniex had planned to launch a second crypto fund but canceled its plans after the regulators’ probe.
The country’s Financial Services Commission (FSC) was quoted by Newsis as saying:
The virtual currency fund is likely to be in violation of the capital markets law and the company is not an investment company accredited by the financial authorities.
Business Korea noted that Zeniex’s fund has never been registered with the Financial Supervisory Service, adding that its affiliated companies have not been approved by the FSC.
What do you think of Zeniex shutting down its operations after the regulators started cracking down on unauthorized crypto funds? Let us know in the comments section below.
Images courtesy of Shutterstock and Zeniex.
Need to calculate your bitcoin holdings? Check our tools section.
The post Korean Exchange Terminating After Regulator Crackdown appeared first on Bitcoin News.
Bitcoin-linked products led with $284 million of inflows, while their ether equivalents saw outflows of…
Bitcoin-linked products led with $284 million of inflows, while their ether equivalents saw outflows of…
Bitcoin-linked products led with $284 million of inflows, while their ether equivalents saw outflows of…
Canada is shifting its focus away from a retail central bank digital currency after years…
Canada is shifting its focus away from a retail central bank digital currency after years…
Canada is shifting its focus away from a retail central bank digital currency after years…