Ali Raza
Another cryptocurrency exchange has shut its doors. AEX, a centralized cryptocurrency trading platform, has announced halting its services. However, unlike other platforms shutting their doors because of a liquidity crisis caused by the crypto winter, AEX is suspending its services because of concerns from authorities.
AEX exchange suspends services
AEX published an official notice saying that it was halting its existing services. However, this decision seems hurried, as the traders did not receive any previous alerts that this would happen.
The exchange is halting its services to cooperate in an investigation with law enforcement in the Guangxi province in China. The notice issued by the exchange was also short, with AEX asking its users to await an announcement from the police.
AEX is a cryptocurrency exchange that commenced its operations in 2013. According to the exchange’s official website, it has obtained a money services business (MSB) license in the US and Canada. The exchange has more than 1 million users and supports over 300 cryptocurrency trading pairs.
The exchange’s website also says that the company covers various services such as non-fungible tokens (NFTs) and decentralized finance (DeFi) offerings. The exchange has not provided any explanation on the extent of the investigation. No dates have been provided on when the exchange will resume its operations.
Several crypto exchanges halt operations
The cryptocurrency sector has faced a massive bear market since the beginning of the year. The worst part of the bear market happened in May when Terra Luna collapsed. The collapse was caused by the depegging of the UST stablecoin.
The fall of the Terra ecosystem triggered a ripple effect across the sector. Companies exposed to LUNA, such as Three Arrows Capital, faced a liquidity crisis, and the investment firm has even filed for bankruptcy.
Celsius Network, a crypto lending firm, and Voyager Digital have also filed for bankruptcy because of a liquidity crisis that forced them to halt operations. The other cryptocurrency firms that have shut down services include Babel Finance.
As these events unfold, regulators have turned their attention towards the space due to the massive losses suffered by those who invested in what was deemed some of the best DeFi exchanges. Moreover, the crypto market is still in bearish sentiment. If more coins continue to bleed, more closure could be witnessed.
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This article was written for Business 2 Community by Ali Raza.
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