CoinEx Halts Operations Amid Prolonged Market Downturn and Regulatory Pressures

Hong Kong-based cryptocurrency exchange CoinEx has decided to cease operations due to prolonged market downturn and rising regulatory requirements. The decision comes as Bitcoin, the world's largest cryptocurrency, continues to trade near two-year lows of around US$60,000.

A recent rebound triggered by fears of dollar debasement proved fleeting amid uncertainties over a potential Federal Reserve rate hike and the US Clarity Act, a key crypto bill. CoinEx cited prolonged weakness in the cryptocurrency market, contraction in overall trading volume and liquidity, and continuously rising regulatory requirements as reasons for its decision.

'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. CoinEx maintained an asset-reserve ratio of more than 100% and all user assets were fully backed and available for withdrawal.