Hong Kong-based crypto exchange CoinEx will be ceasing operations, as a prolonged downturn in digital assets shakes up the sector and squeezes out smaller players.
Bitcoin, the world’s largest cryptocurrency, has languished near two-year lows of around USD 60,000 for months, after slumping roughly 50% from its October 2025 peak of nearly USD 130,000.
However, the virtual currency saw a rebound recently, triggered by fears of dollar debasement.
However, while the apprehension was speculative, uncertainties over a potential Federal Reserve rate hike and stalemate over the US Clarity Act, a key crypto bill, complicated things further for the industry.
“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, while announcing the beginning of an “orderly” wind-down process.
CoinEx will gradually cease services from September 15, 2026, and withdrawal services will remain available until December 22.
Reacting to the news, ChainUp Investment, a digital asset manager, told Reuters, “Average daily bitcoin spot trading volume fell to about USD 2.2 billion in July, its lowest since November 2023, before dropping further to around USD 1.8 billion in August, suggesting participation had fallen to near three-year lows.”
“Volumes in crypto markets have been so anemic 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 decentralized exchanges,” he added further.
CoinEx reportedly maintained an asset-reserve ratio exceeding 100%, fully backing all user assets and ensuring their availability for complete withdrawal.
CoinEx is not alone in quitting the industry, as Bitcoin Suisse is staring at an uncertain future, with the Swiss venture laying off up to 60 of its 120 staff to “reorganize” its business.
“Software development and back-office capabilities will increasingly be consolidated in our international hubs, allowing us to scale faster, access broader talent pools, and invest more effectively in our future offering,” the Zug-based firm said on September 12.
“The staff reductions are due to take effect after a consultation period lasting until September 20,” the company said.
Bitcoin Suisse, founded in 2013 and employing around 200 people globally, will close its IT development site in Copenhagen.
Outside Switzerland, the company has an international hub in Bratislava and aims to establish another in Vietnam.
It also has offices in Liechtenstein, Abu Dhabi, and Bermuda.