Crypto Exchange CoinEx to Cease Operations After 9 Years Citing ‘Significant’ Crypto Market Contraction
Crypto exchange CoinEx announced it will wind down its operations after nearly a decade, attributing the move to a prolonged downturn in the crypto market, diminishing trading volumes and liquidity, and escalating regulatory and compliance costs. The platform plans a phased shutdown beginning with halting new user sign-ups and culminating in a full cessation of services by December.
Reasons for Closure and Shutdown Measures
In its announcement on Tuesday, CoinEx cited a prolonged crypto market downturn, decreased trading volumes and liquidity, and rising regulatory and compliance costs as key factors behind its decision to cease operations.
As part of the wind-down, the exchange will halt new user registrations, referral commissions, and other rewards. Futures contracts will shift to a "Reduce-Only" mode. Additionally, CoinEx will stop accepting new orders or subscriptions for fiat, margin trading, lending, earn, staking, and strategic trading services.
User Commitments and Shutdown Timeline
From September 22, CoinEx will discontinue all non-spot services and halt on-chain deposits, with the exception of CET token deposits.
All spot trading services will be discontinued starting September 29. Non-USDT assets will be processed and returned to users.
Withdrawals will be possible until December 22, after which the platform will cease operations. Any unwithdrawn USDT will be transferred to an independent custodian, who will charge a monthly custody fee.
Management’s Message and CET Token Support
CEO Haipo Yang acknowledged that CoinEx did not become one of the industry’s leading exchanges, and highlighted increasing difficulties managing security and compliance risks.
The company pledged to buy back its CET token at the initial listing price of 0.005 USDT per token, slightly higher than the price before the announcement.
CoinEx Wallet and CoinEx Vault will continue operating normally, as they function independently from the exchange platform.
Background and Industry Context
CoinEx was launched in December 2017 by the crypto mining pool ViaBTC.
At the time of the announcement, the exchange ranked 33rd on CoinMarketCap, with a 24-hour trading volume of approximately $58 million.
CoinEx’s closure follows a wave of crypto exchanges ceasing operations in 2023 for similar reasons, including BitMart, BitMEX, and AscendEX.
Why it matters
The news of CoinEx shutting down is significant as it reflects the ongoing challenges within the cryptocurrency market, including declining trading volumes and tightening regulatory pressures, which are forcing even established platforms to wind down their operations. This highlights the risks and operational difficulties faced by crypto exchanges in the current environment, potentially affecting user and investor confidence in the industry. Furthermore, the firm’s measures — such as token buybacks and transferring assets to an independent custodian — demonstrate efforts to mitigate client impact and fulfill obligations responsibly during closure.
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