CoinEx, a centralized crypto exchange that operated for nine years, will wind down in stages, ending spot trading on September 29 and closing all withdrawals on December 22. Founder Haipo Yang cited shrinking revenue and rising compliance costs as the reason for the shutdown, which follows the exchange’s loss of access to the US market in 2023.
Yang stated in the announcement: “Revenues can decline, responsibility does not. Carrying unlimited risk for limited revenue is no longer a rational choice.”
The exchange will phase out futures, margin, loans, Earn, and staking products alongside the spot trading closure. CoinEx did not specify a timeline for discontinuing those services beyond the December 22 withdrawal deadline.
Regulatory Costs and Market Loss
CoinEx’s shutdown follows a 2023 settlement with New York Attorney General Letitia James, who accused the exchange of operating without proper securities and commodities broker-dealer registration. CoinEx agreed to refund $1.1 million to 4,691 New York investors and pay $600,000 in penalties. The settlement barred the exchange from serving US customers.
Compliance obligations including staffing, licensing, transaction monitoring, custody, and cybersecurity remain substantial even for smaller exchanges, according to the company’s statement. The loss of the US market, combined with these operational costs, made continued operation uneconomical for CoinEx.
Broader Market Consolidation
CoinEx’s closure reflects a broader pattern of exchange consolidation. BitMEX, a crypto derivatives platform that operated for 11+ years, announced its shutdown in July and will terminate services on September 23. AscendEX ceased normal operations on July 1, citing the European Union’s MiCA framework and operational pressures; the exchange’s recapitalization efforts failed and a formal insolvency process is pending.
The top five exchanges by volume, Binance, OKX, MEXC, Bybit, and Gate, controlled approximately 88 percent of tracked volume in August 2024. Binance alone held 43.3 percent market share for the third consecutive month, with $1.83 trillion in combined spot and derivatives volume. OKX recorded $681.3 billion, MEXC $469.5 billion, Bybit $410.3 billion, and Gate $314.7 billion.
Eleven major exchanges tracked by CoinMarketCap handled $4.23 trillion in combined spot and derivatives volume in August, up 12.3 percent from July.
Customer Assets
Post-announcement blockchain data showed $253.6 million in assets held in CoinEx-labeled wallets, including $134.4 million in Bitcoin. An additional $27.6 million in assets were deployed through the Aave protocol, and $50 million in USDT and ETH combined remained in CoinEx wallets.
Timeline of Recent Exchange Closures
CoinEx announced its shutdown plan on September 15. BitMEX, owned by HDR Global Trading, announced its closure decision in July and will end services September 23. AscendEX halted operations July 1 after failing to secure recapitalization. Each closure reflects distinct regulatory or operational pressures, but collectively they underscore the rising costs of compliance and the difficulty smaller exchanges face competing in a market dominated by a handful of large players.
