CoinEx Shuts Down After Nine Years Citing Revenue Decline and Rising Compliance Costs
Centralized crypto exchange CoinEx announced on September 15 that it will wind down operations in stages after nine years, citing shrinking revenue and escalating compliance costs that have made the business unviable. The shutdown marks another exit of a mid-tier platform from an increasingly concentrated market.
Phased Shutdown Timeline
CoinEx has laid out a structured closure plan:
- Immediate: New user registrations have been halted.
- Immediate: Futures markets moved to reduce-only mode.
- Immediate: Margin trading, loans, Earn, and staking products are being phased out.
- September 29: Spot trading ends.
- December 22: Withdrawals close permanently.
The exchange has urged customers to withdraw assets early to avoid congestion as the December deadline approaches, stating that customer assets remain fully backed.
Founder Explains Decision
Founder Haipo Yang stated that CoinEx failed to reach the top tier of industry exchanges, leaving the company burdened with security and compliance obligations that became increasingly difficult to justify against declining revenue.
“Revenues can decline, responsibility does not,” Yang said in a statement. “Carrying unlimited risk for limited revenue is no longer a rational choice.”
CoinEx also pointed to a prolonged contraction in crypto trading volume and liquidity, alongside rising regulatory requirements across major jurisdictions. In 2023, the exchange settled a case with New York Attorney General Letitia James, agreeing to withdraw from the U.S. market after being accused of operating without registering as a securities and commodities broker-dealer. The settlement required CoinEx to refund more than $1.1 million to 4,691 New York investors and pay over $600,000 in penalties.
Wave of Mid-Tier Exchange Exits
CoinEx is not alone. Its shutdown follows similar moves by other long-running platforms:
- BitMEX, once a dominant derivatives venue, will terminate exchange services on September 23 after more than 11 years. Owner HDR Global Trading cited a strategic review of the company and broader crypto industry.
- AscendEX ceased normal operations on July 1, citing the EU’s Markets in Crypto-Assets framework (MiCA) alongside financial and operational pressures. A planned recapitalization failed, and the company has been preparing for a possible formal insolvency process.
While circumstances differ, these exits are removing established venues from a market where trading activity is recovering but concentrating among the largest operators.
Trading Volume Rebounds but Concentration Deepens
According to CoinMarketCap data tracking eleven major centralized exchanges, combined spot and derivatives volume reached $4.23 trillion in August, a 12.3% increase from July as crypto prices recovered.
However, the rebound did little to loosen the grip of the top platforms. Binance, OKX, MEXC, Bybit, and Gate.io accounted for approximately 88% of all trading volume across the cohort. Binance alone captured a record 43.3% market share for a third consecutive month.
August Volume Breakdown (Top 5 Exchanges)
- Binance: ~$1.83 trillion
- OKX: ~$681.3 billion
- MEXC: ~$469.5 billion
- Bybit: ~$410.3 billion
- Gate.io: ~$314.7 billion
CoinEx was not among the eleven exchanges in CoinMarketCap’s sample, so the figures do not directly measure its market share loss. They do, however, illustrate the environment Yang is leaving: trading revenue is recovering while a small group of platforms captures the overwhelming majority of activity.
Structural Pressure on Smaller Exchanges
This concentration creates a difficult equation for exchanges operating further down the rankings. Compliance staffing, licensing, transaction monitoring, custody systems, and cybersecurity remain substantial fixed obligations even when an exchange has a fraction of the volume available to Binance or OKX.
Significant On-Chain Assets Remain
Data from Nansen showed approximately $253.6 million across CoinEx-labeled wallets following the shutdown announcement:
- Bitcoin (BTC): ~$134.4 million (over half the total)
- USDT and ETH: Combined >$50 million
- Deployed through Aave: ~$27.6 million
The balances do not necessarily represent customer liabilities because labeled exchange wallets can include operational funds and other assets. Their size still shows how much capital remains within CoinEx’s on-chain footprint as users move funds elsewhere.
Liquidity Redistribution Begins September 29
Once CoinEx switches off spot markets on September 29, its remaining traders, market makers, and token projects will need alternative venues. This will push another pool of crypto liquidity into a market where five exchanges already control nearly 88% of the trading volume measured by CoinMarketCap.
