South Korean cryptocurrency exchange Zeniex has announced that it will close all of its services on November 23, just seven months after it was established.
The company’s own ZXG token will also be discontinued.
The closure has been attributed to the ongoing crackdown on cryptocurrency exchanges as the Korean government struggles to create a workable legal framework in which they can operate.
Zeniex, a joint project between South Korea and China, which opened May 2018, wrote in a post on its website, that due to “recent issues” they have “come to the conclusion that continuing to operate such a service will be difficult.”
The company also recenlty claimed that it would have difficulties “operating smoothly with such current pressure from the financial authorities.”
Such pressures have been mounting for some time, especially since the Financial Services Commission (FSC) reaffirmed their stance against ICOs in Korea.
Just last month, the FSC and Financial Supervisory Service (FSS) in Korea announced that they would be ramping up their investigations of cryptocurrency funds and companies, with ZXG mentioned by name in their statement.
Officials claim that Zeniex violated capital markets laws by not being properly registered.
A Zeniex representative responded that as the token issuance occurred outside of Korea, and that less than $1 million was raised, the company should be exempt from the reporting obligation stipulated in the capital market laws.
To accommodate a smooth and transparent exit, the exchange has increased withdrawal limits to allow users to withdraw all of their holdings in a lump sum.
While crypto-trading has already ceased, the exchange’s remaining services will cease on November 23.
“As of November 23, 2018, Zeniex will terminate all services, you will no longer be able to check your crypto assets on Zeniex. Please make sure to withdraw your assets before the end of service,” read the company’s website.