CoinEx Shuts Down Amid Regulatory Pressure, Allows User Withdrawals

CoinEx, a cryptocurrency exchange, has announced its closure due to declining industry trading volume and liquidity, growing regulatory requirements, and increasing compliance costs. The shutdown will take place in three stages, with the first stage starting on September 15 and ending on December 22.

Binance's CEO, Changpeng 'CZ' Zhao, compared CoinEx's orderly shutdown to notorious collapses like QuadrigaCX, which was unable to return client funds after its founder passed away. CZ noted that CoinEx has allowed users to withdraw their assets, a sharp contrast to the situation at QuadrigaCX.

CoinEx reassured users that their assets are fully backed and accessible for withdrawal, with an asset reserve ratio above 100%. The exchange will repurchase any remaining CET balances for 0.005 USDT per token and charge a monthly custody fee of five percent of the initial balance on USDT left on the platform after December 22.