Crypto exchange CoinEx has announced that it will stop its operations, citing ongoing challenges in the cryptocurrency market as a major reason. The decision follows a prolonged period of weakness in the crypto sector, with Bitcoin currently trading near two-year lows of around $60,000. This is a significant drop from its peak of nearly $130,000 in October 2025, and the price has fallen roughly 50% over that time. While a recent rebound was sparked by concerns about the U.S. dollar losing value, the improvement was short-lived due to uncertainty about potential Federal Reserve rate hikes and the future of the U.S. Clarity Act, a key piece of legislation aimed at regulating the crypto industry. According to CoinEx, the ongoing decline in the crypto market, reduced trading volume, and increasing regulatory pressures in major markets have created conditions that are "beyond reasonable boundaries." Based in Hong Kong, the exchange has decided to shut down its services in an orderly manner. It plans to gradually stop operations starting on September 15, 2026, with withdrawal services remaining available until December 22, 2026. Market data indicates that the crypto sector has seen a significant drop in activity. In July, the average daily Bitcoin spot trading volume fell to about $2.2 billion, the lowest since November 2023. This figure dropped further to around $1.8 billion in August, signaling that participation in the market may have reached near three-year lows. Justin d’Anethan, head of research at Arctic Digital, noted that trading volumes have been so low that it's unlikely to be profitable to operate in the space anymore. He added that the decline in trading activity has left exchanges vulnerable to competition from other financial sectors, such as artificial intelligence, and from decentralized exchanges that operate without a central authority. CoinEx emphasized that it maintained an asset-reserve ratio of over 100%, meaning that all user assets are fully backed and available for withdrawal. The exchange has assured users that their funds remain secure and accessible during the wind-down process.