Zeniex cryptocurrency exchange will shut down all its operations on November 23, 2018. In a press release, the firm says the shutdown is in response to issues afflicting its native cryptocurrency ZXG. The shutdown comes as a surprise given that the exchange is barely a year old.
The platform underlying cryptocurrency ZXG has come under immense scrutiny from regulators in the country. The mounting pressure has now dealt a big blow, the exchange plans to list the cryptocurrency in international exchanges
Faced by the mounting pressure, Zeniex is urging its customers to withdraw their crypto holdings before the deadline. After, November 23, the platform will go offline.
?However, with recent issues regarding ZXG, we have gone through great deliberation both internally and externally. As a result, we have concluded that continuing to operate such a service will be difficult. It is with much regret to announce that all services of Zeniex will be terminated on November 23, 2018,? Zeniex in a statement.
The shutdown comes at a time of increased scrutiny of cryptocurrency exchanges by the South Korea Government. The government is in pursuit of unauthorized platforms that it says pose significant risks to the public.
South Korea Financial services warned people against the risk of investing in unauthorized exchanges as early as late last month. According to the regulator, such platforms cannot protect investors from risks in the volatile sector.
The regulator went a notch higher naming Zeniex as one of the exchanges it was maintaining keen interest on. According to the regulator, the exchange lacks the necessary licenses to operate in the country as required by the Capital Market Act. Zeniex on its defense has always insisted that it was not necessary to register, given that it had raised less than 1 billion Won.
Zeniex shutdown underscores how regulators in South Korea are maintaining a watchful eye on the burgeoning sector. Early in the year, the government contemplated banning cryptocurrencies. Later on, it changed its mind and decided to regulate the sector. The government has since banned anonymous trading as well as barred minors, and government officials form venturing into the sector.