Chinese crypto exchange XMEX makes controversial decision to shut down its operations

Chinese cryptocurrency exchange XMEX is now being accused of taking advantage of recent developments involving digital currencies in China to permanently shut down its operations.

Despite the ban being imposed on financial institutions to facilitate transactions involving crypto, it is still possible for Chinese individuals to buy bitcoin and other cryptocurrencies and trade them on overseas exchanges like Binance.

Nonetheless, XMEX made the controversial statement that in its bid to actively respond to the joint announcement of the China Mutual Finance Association and three other departments on financial payment institutions that do business related to virtual currency, “the company would comply by shutting down its operations permanently, starting today.”

What happens now?

Due to the crypto exchange’s decision, contract and documentary transactions will be automatically canceled and settled. Meanwhile, currency trading transactions will also be terminated as well as customer-to-customer transactions. All pending orders will be automatically canceled as well, according to the official statement from XMEX.

The company claims to have 3 million global users and for them to ensure the safety of their assets, they were advised to withdraw all account and Jianlibao assets before May 23, 2021.

Observers in doubt about XMEX decision

A number of crypto industry observers have expressed doubts regarding the motives behind XMEX’s decision to pull the plug on its operations.

Journalist “Wu Blockchain” claimed XMEX is an exchange that primarily sells contract gambling to people in small cities and rural areas in China while adding “some people speculate that they just made enough money to find an excuse to close.”

Meanwhile, XMEX seemingly found an ally in a Twitter user named Polly฿, who said the company considers itself as a global platform and they could only finish operations in China, pointing out a section of the cryptocurrency exchange’s website saying XMEX does not want to violate regulations of other countries.


Image courtesy of Cointelegraph News/YouTube

Micky is a news site and does not provide trading, investing, or other financial advice. By using this website, you affirm that you have read and agree to abide by our Terms and Conditions.
Micky readers - you can get a 10% discount on trading fees on FTX and Binance when you sign up using the links above.