Hong Kong-based crypto exchange CoinEx said on Tuesday that it has decided to cease operations, as a prolonged downturn in digital assets shakes up the sector and squeezes out smaller players.
Bitcoin, the world’s largest cryptocurrency, has languished near two-year lows of around $60,000 for months, after slumping roughly 50% from its October 2025 peak of nearly $130,000.
A recent rebound triggered by fears of dollar debasement
also proved to be fleeting amid uncertainties over a potential
Federal Reserve rate hike and the U.S. Clarity Act, a key crypto
bill.
Prolonged weakness in the cryptocurrency market, a
contraction in overall trading volume and liquidity, and
continuously rising regulatory requirements across major
jurisdictions have all “exceeded reasonable boundaries”, CoinEx
said in a statement on Tuesday, adding that it had decided to
cease operations and begin an orderly wind-down process.
CoinEx said it will gradually cease services from September
15, 2026, and withdrawal services will remain available till
December 22.
Average daily bitcoin spot trading volume fell to about $2.2
billion in July, its lowest since November 2023, before dropping
further to around $1.8 billion in August, suggesting
participation had fallen to near three-year lows, according to
ChainUp Investment, a digital asset manager.
“Volumes in crypto markets have been so anemic that there’s
probably no money to be made and so operations aren’t
sustainable,” said Justin d’Anethan, head of research at Arctic
Digital, a private markets advisory firm.
“There’s just been way less trading activity than prior
years …(Exchanges) are getting eaten by other trades and
sectors, such as AI, and by decentralised exchanges.”
CoinEx said it maintained an asset-reserve ratio of more
than 100% and all user assets were fully backed and available
for withdrawal in full.
Source: Khaleej Times