BitMEX Shuts Down Amid Declining Volumes and Rising Compliance Costs

BitMEX, the cryptocurrency exchange that invented the perpetual swap, has officially shut down its operations as of today. The exchange had a controversial eleven-year run and at one point controlled more than half of the market.

However, by the time HDR Global Trading announced the closure in July, BitMEX's market share had shrunk to 0.08% of daily Bitcoin futures volume, around $84 million per day.

This is not an isolated case, as three exchanges - CoinEx, BitMart, and BitMEX - have shut down within two months of each other.

According to the article, none of these exchanges collapsed due to a hack or regulatory issues, but rather due to falling trading volume, rising compliance costs, and liquidity flight.