CoinEx Shuts Down Due to Unaffordable Regulatory Burden

CoinEx, a nine-year-old cryptocurrency exchange, has announced its decision to shut down due to unsustainable costs. The company cited declining trading volumes and liquidity, combined with increasingly demanding regulatory requirements, as the primary reasons for its closure.

In an interview, CoinEx Chief Executive Haipo Yang stated that 'after much reflection, I have come to accept a hard truth... CoinEx did not become one of the industry's leading exchanges, and the security and compliance risks of running a crypto exchange have become increasingly difficult to contain.'

CoinEx has been operating at a loss due to the high costs associated with maintaining its exchange. The company has over 100% reserves, meaning customer assets remain fully backed, but it can no longer sustain the burden of regulatory requirements and security risks.

The shutdown will be an orderly process, with CoinEx allowing customers to withdraw their funds until December 22, 2026. Users who leave their assets on the platform beyond this date will face additional custody arrangements.