South Korea’s Prixbit Closes Down over Banking Woes

South Korea’s Prixbit cryptocurrency exchange has formally shut down.

In a website announcement posted August 9 and entitled ‘Prixbitend,’ the exchange declared it would terminate operations. The move was then reported by local press.

“Due to negative internal and external influences, management difficulties could not be overcome and normal operation became impossible,” the founder said.

The exchange said it had worked tremendously to deal with hacking, money laundering, and voice phishing. It guaranteed to return all deposits for individuals who had given client data to allow for return. For other tokens still on deposit, the site recommended the owners to enlist for a refund as soon as possible.

An August 19 report in BusinessKorea said that the failure of the exchange had to do with “financial difficulties” and that investors were worried almost their holdings.

The report underscored the bifurcation of the local market — in which four exchanges can connect to local banks for fiat exchanges while the rest have been closed out from the financial framework — as well as the low trading volume as factors.

BusinessKorea reported that approximately 200 Korean exchanges are in threat of shutting down, a full 97 percent of the sector.

According to the magazine, the shortcoming of the local environment is driving numerous coins to look for listings overseas, whereas non-Korean exchanges are looking to supply won-denominated services.

It cites Mediblock, a medical-related blockchain venture, and Temco, a supply-chain blockchain venture, as illustrations of local Korean players looking for the listing of their coins on overseas markets. The magazine stated they were seeking Singapore or the U.S.

Prixbit’s failure comes amidst the sector working to tighten security and get back to basics. Coinone has been particularly dynamic in this regard, doing a security approval and publishing listing rules recently, whereas its Malta exchange is in the process of closing.

Minimal data is available about Prixbit, and it appeared to do very little while in existence. According to Foundico, which tracks ICOs, the beta rolled out in February this year. The formal opening was slated for September, and the exchange was to issue two tokens, the GRX and the PRX.