South Korean Crypto Exchange Zeniex Closes Amidst Crackdowns

South Korean Crypto Exchange Zeniex Closes Amidst Crackdowns

Alan Wass

There seems to be no letup in the ongoing crackdowns of unauthorized South Korean crypto exchanges as Zeniex becomes the latest casualty.

In an official statement from Zeniex on Friday (Nov 9), the South Korean exchange announced that they will be terminating their services soon as they lose their battle with Korean authorities.

Zeniex is Closing Operations

Zeniex was only recently established in May 2018 and was a collaborative crypto exchange effort between China and South Korea. The exchange has noted that issues with their token ZXG have caused concerns both internally and externally that have culminated in the closure of the exchange.

In the official statement from Zeniex, the exchange has announced that operations on their platform will cease on November 23. Crypto trading however has already stopped on the platform and Zeniex users have been asked to remove their crypto-assets from the site as soon as possible.

What About ZXG Holders?

Zeniex’s ZXG token was apparently at the center of the issues pertaining to the closure of the exchange and was being investigated by Korean crypto regulators. Zeniex initially thought that their token would be listed on international exchanges, but the release encountered problems.

In a separate statement from Zeniex, the company addressed the problems that the ZXG token had caused:

“We believe that ZXG Crypto fund No 1. will have difficulties to operate smoothly with such current pressure from the financial authorities.”

If you are a holder of the ZXG token however, you can expect to be completely refunded by Zeniex in Ethereum today (November 12).

Only last month, the South Korean Financial Services Commission (FSC) were warning potential investors in regards to buying into unauthorized ICO projects and crypto exchanges. At the time, the ZXG token was called out for not registering with the nation’s crypto regulatory bodies.

Zeniex might well have exacerbated the problem when they told the Maeil Business newspaper in Korea in response that they were not obliged to register with regulators.

The one thing we do know for sure is that the Zeniex crypto exchange is now closing and that the ZXG token will soon disappear. If you have crypto assets on the exchange, it is recommended that you remove it at the earliest opportunity.