HONG KONG/BENGALURU – Hong Kong-based crypto exchange CoinEx said on Sept 15 that it has decided to cease operations, as a prolonged downturn in digital assets shakes up the sector and squeezes out smaller players.
Bitcoin, the world’s largest cryptocurrency, languished near two-year lows of around US$60,000 for months till mid-August, after slumping more than 50 per cent from its October 2025 peak of nearly US$130,000.
The recent rebound to above US$77,000, triggered by fears of dollar debasement, also proved to be fleeting amid uncertainties over a potential Federal Reserve rate hike and the US Clarity Act, a key crypto Bill. The price has largely stabilised in the last three weeks.
Prolonged weakness in the cryptocurrency market, a contraction in overall trading volume and liquidity, and continuously rising regulatory requirements across major jurisdictions have all “exceeded reasonable boundaries”, CoinEx said in a statement on Sept 15, adding that it had decided to cease operations and begin an orderly wind-down process.
CoinEx said it will gradually cease services from Sept 15 and withdrawal services will remain available till Dec 22.
Average daily bitcoin spot trading volume fell to about US$2.2 billion (S$2.8 billion) in July, its lowest since November 2023, before dropping further to around US$1.8 billion in August, suggesting participation had fallen to near three-year lows, according to ChainUp Investment, a digital asset manager.
“Volumes in crypto markets have been so anaemic 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, a private markets advisory firm.
“There’s just been way less trading activity than prior years… (Exchanges) are getting eaten by other trades and sectors, such as AI, and by decentralised exchanges.”
CoinEx said it maintained an asset-reserve ratio of more than 100 per cent and all user assets were fully backed and available for withdrawal in full. REUTERS
