Cryptocurrency Exchange of South Korea closes 6 months after its inauguration
Zeniex, a relatively unknown South Korean stock exchange, will close its operations on November 23, the market operator announced. The closing of the stock market follows the withdrawal of the digital asset ZXG, a token based on Ethereum. The ZXG tokens holders submitted their holdings on November 12 to obtain a refund.
ZXG was meant to be the key to an international cryptographic investment fund. However, Zeniex discontinued the fund and the token, citing unfavorable regulatory conditions:
“It was expected that ZXG would be included in the encryption exchanges abroad to continue with the administration of the fund. However, with the recent development problems, we believe that the ZXG Crypto fund # 1 is and will have difficulties to operate without problems with the current pressure of the financial authorities. As such, we feel a great responsibility and have come to this unfortunate decision. “
Zeniex negotiated only a handful of digital assets against Bitcoin (BTC) and ETH, and it will not affect overall volumes in Korea. The exchanges of South Korea are unique for their high volumes, being a place of speculative trade with a significant premium over other exchanges.
Zeniex was established in May 2018 by a group of Chinese and Korean financial experts. However, the planned cryptographic investment fund was never fully legalized with the local financial authorities. The Financial Services Commission of South Korea (FCC) has launched an offensive against unauthorized exchanges. In the case of Zeniex, the contentious point was the crypto investment fund, which according to the authorities violated the Capital Markets Law of the country.
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