Government Clampdown Leads To Closure Of Zeniex And Other Illegal Exchanges In South Korea
Zeniex is a digital money exchange that carries out its operations in Korea. It recently declared intentions of terminating its activities in the future.
This was because of a state restriction on illegal trades. The corporation released this information to the public domain on November 9th. South Korea concluded that due to these recent developments, it was dangerous to operate in such a business environment.
Market information indicates that most cryptocurrency traders had ceased operations by 9th November. However, other companies may opt to terminate operations on November 23rd.
Zeniex Customers Advised To Withdraw Their Money
It is therefore, prudent for the firm’s clients to remove their resources before the expiry of the set deadline, due to the fact that the service will cease to exist after the deadline.
Moreover, in another declaration, they suggest that the Zeinex digital currency is under scrutiny. It was exposed to a native watchdog’s inquiry and is planned for termination on the 23rd of this month.
The firm now wants to list its token on global exchanges in overseas nations. Though, this decision failed to succeed as it was eventually rejected. This as per the latest reports issued by the corporation.
Analysts predict that the digital asset may not be able to conduct its operations because of the present pressure originating from regulatory institutions.
Zeinex may return money it devoted in the form of ETH. This event was expected to take place on November 12th.
FSC Advises Customers To Invest In Legal Digital Money
Towards the conclusion of last month, South Korea’s watchdog warned shareholders against investing in unlawful digital money trades and IPO’s. The reasoning was that such platforms do not safeguard shareholders against potential threats which can lead to losses.
The FSC further disclosed that ZXG had not been listed by the market watchdog as per requirements of SKCM Act. As a result, they were conducting their activities contrary to applicable laws in the nation.
Zeniex told one of the leading media outlets in South Korea that they were not required to be listed as its capital had not surpassed 1 billion. The regulatory body immediately commenced investigations against this corporation to verify if the platform was conducting its operations per the set regulations.
Early this year, it was widely anticipated that the state would enforce a resilient prohibition on digital currency. Though, the nation decided to streamline the industry by controlling it.
Additionally, the state laid down various procedures which it wanted to use to regulate all crypto undertakings. The administration has also engaged a pool of qualified attorneys to assist them to create flawless regulations that will be used in this industry.