South Korean crypto exchange Zeniex to shut down all operations on November 23

South Korean crypto exchange Zeniex has announced that it will terminate its services on November 23.

Officially launched on May 8 2018, Zeniex was established as a joint project between South Korea and China, according to Business Korea. The exchange launched ZXG Crypto Fund No. 1 in September as the country’s first virtual currency fund.

In an online post dated November 11, Zeniex said:

“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. “

CoinTelegraph reported that the platform has already stopped crypto trading services on November 9.

In a separate announcement, Zeniex said that the ZXG Crypto Fund No. 1 will also be closed, citing “pressure from financial authorities.”

“With recent developing issues we believe that ZXG Crypto fund No 1. is and will have difficulties to operate smoothly with such current pressure from the financial authorities,” it said.

“As a result, Zeniex and Genesis will return the cost of ZXG to the Ethereum(ETH) by calculating the average cost ZXG.”

Last month, South Korea’s Financial Services Commission (FSC) issued a warning to the investors, urging them to pay “special attention” when considering investment in cryptocurrency funds.

In a report dated October 25, Business Korea stated:

“The virtual currency funds have never been registered in the Financial Supervisory Service, and their financial investment guide on their homepage has not been audited by the Financial Supervisory Service. None of the management company, sales company and the trustee have been approved by the Financial Services Commission.”

Speaking to Maeil Business Newspaper, a Zeniex representative clarified that the company was not obliged to register as it had raised less than 1 billion won, CoinTelegraph reported. However, in its investigations against the company, FSC cited a lack of ability to check whether the platform is operating as claimed.