First Cryptocurrency Fund in South Korea Closes Amid Regulatory Pressure
- Seoul is still playing hardball with local cryptocurrency businesses.

Unable to Meet Expectations
The exchange was first opened in May 2018, and has handled $410,000 worth of transactions in the last 24 hours, according to its website. The site lists an address in Seoul, but no team members are displayed.
According to an official statement, it is closing its doors because "we have come to the conclusion that continuing to operate such service will be difficult." It adds: "We sincerely apologize that we were unable to meet the expectation of our Zeniex users and supporters."
MultiVAC
The authorities did not take any overt action against the exchange, which is not significant in size. Attention was attracted because of its cryptocurrency investment fund, called Zxg Crypto Fund No. 1, which was reportedly the first such entity in the country.
The Financial Services Commission and the Financial Supervisory Service, two of the country's financial watchdogs, specifically warned against this entire in October because it was not approved by the authorities.
According to the website, the fund was scheduled to raise 1,000 ETH (approximately $212,000) in mid-September; it does not say if this was completed successfully. Either way, the company claims that the money raised was not enough to require that it report to the authorities.
The fund's section of the website lists two projects - one called MultiVAC, which the Asimov fans among you will recognise as the name of a fictional world computer (although this iteration of MultiVAC is a "next-generation public Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term designed for large-scale and complex distributed applications," which runs of a Byzantine consensus protocol), and one called Blockcloud, which raised over a million dollars in its recent ICO, if its website is to be believed.
Zeniex says that the fund is being closed because it "is and will have difficulties to operate smoothly with such current pressure from the financial authorities. As such we feel heavy responsibility and have come to this unfortunate decision."
It intends to return all purchased tokens to the buyers.
Cryptocurrency investment funds are all the rage nowadays, with tens of them popping up all over the world. Even the Chinese government has some. The Korean government is still not so accepting, which is significant because of the size of the Korean cryptocurrency market.
Unable to Meet Expectations
The exchange was first opened in May 2018, and has handled $410,000 worth of transactions in the last 24 hours, according to its website. The site lists an address in Seoul, but no team members are displayed.
According to an official statement, it is closing its doors because "we have come to the conclusion that continuing to operate such service will be difficult." It adds: "We sincerely apologize that we were unable to meet the expectation of our Zeniex users and supporters."
MultiVAC
The authorities did not take any overt action against the exchange, which is not significant in size. Attention was attracted because of its cryptocurrency investment fund, called Zxg Crypto Fund No. 1, which was reportedly the first such entity in the country.
The Financial Services Commission and the Financial Supervisory Service, two of the country's financial watchdogs, specifically warned against this entire in October because it was not approved by the authorities.
According to the website, the fund was scheduled to raise 1,000 ETH (approximately $212,000) in mid-September; it does not say if this was completed successfully. Either way, the company claims that the money raised was not enough to require that it report to the authorities.
The fund's section of the website lists two projects - one called MultiVAC, which the Asimov fans among you will recognise as the name of a fictional world computer (although this iteration of MultiVAC is a "next-generation public Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term designed for large-scale and complex distributed applications," which runs of a Byzantine consensus protocol), and one called Blockcloud, which raised over a million dollars in its recent ICO, if its website is to be believed.
Zeniex says that the fund is being closed because it "is and will have difficulties to operate smoothly with such current pressure from the financial authorities. As such we feel heavy responsibility and have come to this unfortunate decision."
It intends to return all purchased tokens to the buyers.
Cryptocurrency investment funds are all the rage nowadays, with tens of them popping up all over the world. Even the Chinese government has some. The Korean government is still not so accepting, which is significant because of the size of the Korean cryptocurrency market.