Just five months after the launch, the South Korean cryptocurrency exchange Zeniex closes, offering users compensation for their own tokens.
(http://coinoctogon.com/wp-content/uploads/2018/01/zeniex.png)
The exchange, which was made public in may, reports that the company will cease all operations on November 23. As justification for decisions Zeniex called problems associated with its own token sites - ZXG. "With recent issues regarding ZXG, we've been through extensive discussion," the exchange said in a statement. "As a result, we have come to the conclusion that it will be difficult to continue working with such a service."
Remove or lose
Bidding tokens ZXG ended on 9 November, and the owners of the tokens offered to take compensation in the ether (ETH) on November 12. For all other assets, users were prompted to remove them before the service was terminated.
Zeniex, a joint venture between Chinese and South Korean companies, has also launched South Korea's first cryptocurrency Fund, ZXG Crypto Fund 1, and it is this move that seems to have caused major problems . At the end of last month, the South Korean financial supervision Service (FSS) and the financial services Commission (FSC) called on investors to exercise caution over virtual currency funds, saying that the guarantees of the capital markets Act are not applicable to such assets.
According to Business Korea, cription Zeniex were not registered with FSC, and agentsvto did not conduct monitoring of the financial management of the Fund. This was a violation of the law as South Korea's capital markets Act requires all funds to be registered with the FSC. Funds collected from investors must also register reports.
Violation of legislation
In addition, the FSC did not provide approval to the Trustee or the management company. By law, the asset management company responsible for the management of the Fund, as well as the company responsible for selling to investors, must obtain financial approval from the regulatory authorities. And to protect investors, rules such as minimum capital requirements and avoidance of conflict must also be respected.
In the recent past, the environment for the cryptocurrency sector in South Korea has become somewhat hostile. As reported in October, the South Korean government refused to certify both cryptocurrency and blockchain firms and venture companies working with cryptocurrency, thereby denying their benefits and financial incentives provided to startups, such as tax breaks.
Instead, cryptocurrency and blockchain startups have been merged into one category with entertainment and gambling. This has led the Korean bar Association to urge authorities to create a legal framework to guide the blockchain and cryptocurrency sectors to protect investors without stifling innovation.
"We urge the government to abandon negative perceptions and fluctuations, as well as draft laws to help develop the blockchain industry and prevent the side effects associated with cryptocurrencies," said Kim Hyun, President of the Association of legal practitioners in South Korea.
Link to the source of information (Russian) - https://altstake.io/news/zakrytie-yughnokoreyskoykriptobirghizeniex