CoinEx will shut down derivatives services first, while its wallet and vault products will remain operational.
CoinEx said operational uncertainties and rising costs made continued exchange operations unreasonable
Photo Credit: Unsplash/FlyD
CoinEx has initiated a gradual shutdown, having spent nearly nine years in operation, with spot trading ending on September 29, while withdrawals will close on December 22. In its announcement of cessation made on September 14, CoinEx informed that registration for its users will end on September 15 as the future markets become reduce-only markets, which means that it won't be possible to increase or open new positions. The exchange added that it has taken this decision after a prolonged crypto downturn, weak industry trading activity, low liquidity, and the rise of regulatory and compliance costs.
As per the announcement on X, CoinEx said that from September 15 onwards, new sign-ups, referral rewards, and subscriptions or orders have been suspended for fiat services, margin trading, lending, Earn, staking, and strategy trading at CoinEx. Positions held in futures can still be reduced until September 22, when all derivatives services will close, and any open positions will be forcefully settled at index prices.
The majority of the on-chain deposits will also cease on that date, but CET deposits will be available until September 29. Spot markets are expected to be operational until September 29, when all unfilled orders will be cancelled on that date.
CoinEx cited reasons such as the long bear market, reduced trading volumes and liquidity, and increased regulatory standards for the decision to shut down operations. According to the shutdown notice, the costs and “operational uncertainties” had become unreasonable for the company to endure. There was no mention of any regulators, legal cases, or any other factors that caused this shutdown of operations.
The closing down of exchanges will not affect CoinEx Wallet and CoinEx Vault. As per statements by CoinEx, the two platforms are independent of exchanges. The two will continue to operate following the closing of trading, deposits, and withdrawals from the centralised exchange. CoinEx Wallet's support site continued to be active on September 15, with its terms of service still imposing access restrictions in relation to sanctions.
Another crypto exchange wound up operations this year as BitMart's crypto exchange shut down its trading facilities on August 26, and its operation will come to a close on January 31, 2027. According to the shutdown process that had been laid out, BitMart has ceased accepting any new users or deposits, futures trading has entered reduced-only mode, and spot order books have closed.
Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.