Hong Kong crypto exchange CoinEx to shut amid prolonged market downturn
Volumes in crypto markets have been so anemic that there's probably no money to be made and so crypto exchange operations aren't sustainable.
Hong Kong-based cryptocurrency exchange CoinEx announced its closure on Tuesday, amid a prolonged market downturn that has affected the entire industry. Bitcoin, the world's largest cryptocurrency, has remained near two-year lows of around US$60,000 for months, slipping about 50% from its October 2025 peak of nearly US$130,000. The exchange cited prolonged weakness in the cryptocurrency market, declining trading volume and liquidity, and increasingly stringent regulatory requirements as the key factors prompting its decision.
CoinEx stated it would gradually cease operations from September 15, 2026, with withdrawal services remaining available until December 22, 2026. In July, average daily Bitcoin spot trading volume hit a record low of about US$2.2 billion, having dropped further to around US$1.8 billion in August, suggesting a sharp decline in participation. Digital asset manager ChainUp Investment attributed the anemic market conditions to an absence of profitable opportunities, making it unsustainable for operations to continue.
Experts believe that the reduced trading activity and the shift of attention towards other sectors, like AI and decentralized exchanges, have contributed to the market's turbulence. CoinEx reported maintaining an asset-reserve ratio of over 100%, ensuring all user assets are fully backed and ready for withdrawal.
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