BY CNA Team - November 12, 2018
South Korea’s Zeniex crypto exchange to cease operations
Zeniex, a Seoul-based crypto exchange, has been ordered by South Korea’s Financial Services Commission to shut down after failing to register with the financial regulator.
The exchange will cease operations from Nov 23 and in a notice dated Nov 9, says that customers must withdraw all their holdings before Nov 23.
It says recent issues regarding the exchange’s native token, ZXG, and the order by the financial authorities to shut down the ZXG Crypto Fund No.1 has made operating such a service difficult.
In a separate notice, the exchange says the trading of the exchange’s native token, ZXG, will cease from Nov 9 and that the ZXG Crypto Fund No.1will also be shut down.
The token was supposed to be listed on exchanges outside of the country but that did not materialise.
The exchange together with partner Beijing-based venture capital firm Genesis Capital will be refunding investors of the fund with ethereum according to the value of their holdings.
Zeniex, which began operations in May, was a joint venture between South Koreans and Chinese.
The exchange had nine coins and tokens together with 12 trading pairs listed.
Crypto stakeholders and investors will continue to watch closely the moves and announcements made by regulators and legislators as they come closer to clearly defining the space as an industry and as investable assets.
The government is expected to state its official stance on initial coin offerings (ICOs) as soon as this month after collecting the views of blockchain firms on the current legal framework.
There has been quite a bit of interest in blockchain and crypto issues in recent months as legislators on both sides of the political divide pushed for more clarity on the blockchain technology and cryptocurrencies.
The government recently announced the allocation of US$35mil in next year’s budget for the development of blockchain technology, and will select 12 projects next year to develop, from six this year.
While the move to allocate more funding is seen positively, the FSC last month also warned the public on crypto funds that contravene the country’s Capital Markets Act.
It says crypto funds are not approved and are not registered, and as such as in violation of the law.
Image courtesy of Zeniex website.