CoinEx Shuts Down Amid Rising Security and Compliance Risks
CoinEx, a Hong Kong-based crypto exchange that has been operating for nine years since 2017, will shut down by December 22, 2026. The founder, Haipo Yang, cited rising security and compliance risks as the main reason for the move.
The exchange's revenue declined while the risks and responsibility increased, making it 'no longer a rational choice' to continue operating. New registrations were halted on September 15th, and margin and spot trading will cease by the end of this month. The exchange will buy back its native CET token at $0.005.
CoinEx has struggled with security risks in the past, including a $70 million hack in 2023 that it managed to fully repay users for. However, regulatory scrutiny and competition from rival exchanges also played a role in the decision to shut down. The exchange denied any wrongdoing in relation to alleged Iranian crypto flows, which were facilitated through its platform.
Binance founder Changpeng Zhao hailed CoinEx's orderly wind-down as a sign of a maturing space, allowing for user withdrawals and minimizing disruption to customers.