In 2026, is CoinEx safe and legit? It breaks down its regulation, security track record, the 2023 hack and who should (and shouldn’t) use it.
Quick answer
Yes, CoinEx is a legitimate cryptocurrency exchange. It has been operating since 2017, has more than 10 million users from over 200 countries, and has a 4.5-star rating with more than 50,000 reviews on the Google Play Store. However, the term “legit” does not equate to “no risk.” CoinEx is not regulated by any Tier-1 financial authority, or FCA, the SEC, or an ASIC license; it was hacked $70 million in 2023, and it is officially out of the reach of users of the US, Canada, and mainland China. This tutorial explains exactly how CoinEx is secure, what the dangers are, and if it’s the right exchange to go with.
What Is CoinEx?
Founded in 2017 by the ViaBTC Group, which is also the founder of the mining pool, ViaBTC, CoinEx is a global cryptocurrency exchange. The exchange was founded in Hong Kong but has now been moved to Seychelles. It currently has more than 1,000 cryptocurrencies supported, provides spot, margin and futures trading with up to 100x leverage and has over 60 fiat currencies supported for deposit. The platform is offered in 18 languages and, on its own claims, is utilized by people in over 200 nations and regions.
However, the CoinEx app has achieved an average rating of 4.5 stars on Google Play, having accumulated approximately 52,000 reviews and thus, with more than 5 million downloads, it has proven to be safe and easy to use every day, although app-store ratings shouldn’t replace a real safety audit.
Is CoinEx Regulated?
This is where CoinEx’s tale becomes more complicated. It is not regulated by any of the big Tier-1 regulators, such as FCA (UK), ASIC (Australia) or SEC/CFTC (US). On the other hand, CoinEx has fewer registrations, such as its Virtual Asset Service Provider (VASP) registration in Poland and its registration with the Financial Intelligence Unit of Estonia.
CoinEx also received a Money Services Business (MSB) registration in the United States in the past, but it was linked to a settlement agreement with the New York Attorney General’s office in 2023, which stipulated that CoinEx would settle the charges and leave the United States market completely. This is why at this time CoinEx does not accept customers from the United States, Canada, or mainland China, and even copying an account from another jurisdiction and then using a VPN to transact there can lead to the suspension of the account.
As for comparison, Binance, KuCoin, and MEXC are not regulated at Tier-1, but it doesn’t mean CoinEx users’ funds are not as protected as in a fully licensed exchange, and its dispute resolution is most likely through CoinEx’s support channels, not a financial regulator.
CoinEx Security Features
Although the regulatory influence is relatively light, CoinEx has invested relatively heavily in the security of its platform:
- Proof-of-Reserves (Merkle Tree audits): CoinEx regularly releases its report on proof of reserves and states that all funds held by its customers are backed by an equal number of assets held by the company.
- Cold storage: Is the main reason, as most of user funds are stored in offline cold wallets instead of online hot wallets, thus minimizing the risk of exposure in the event of a hack.
- Two-factor authentication (2FA): Accounts can be protected by a TOTP app or passkey, but not required.
- CoinEx Shield/insurance fund: A special fund is set aside to compensate the user in case of any security incident.
Regulators are generally less inclined to license a platform in markets where some users are prohibited from trading.Some traders at CoinEx can trade without identity verification, a benefit for privacy-conscious users but also a drawback for regulators in more stringent markets.
Summary of the CoinEx hack in 2023.
CoinEx’s most significant security incident is a topic that should be broached in any objective security assessment. CoinEx’s risk control systems detected abnormal withdrawals from some of their hot wallets in September 2023. Over the next few hours, attackers were able to siphon off about $70 million in a variety of tokens, including ETH and TRX. Subsequent blockchain examination, including by independent analysts, traced the funds back to North Korea’s Lazarus Group, which they operated in, navigating the route taken by the stolen money.
Importantly, the stolen funds were not directly from balances of individual users but were from the exchange’s own operational hot wallets and the exchange publicly pledged to reimbursing any affected users in full. The withdrawals were temporarily suspended while CoinEx’s wallet infrastructure was being rebuilt, and services were re-activated within one or two weeks, with the full system rebuild taking place over the coming months. There have been no reports of users suffering permanent losses as a result.
Overall, the incident response is considered a decent response by the crypto industry, due to the fact that CoinEx was transparent about the incident, promptly reimbursed all affected users, and rebuilt their infrastructure.
CoinEx Pros and Cons
Pros:
- A broad range of assets and 1,000+ cryptocurrencies supported.
- Low trading fees with additional discounts for trading with CET (CoinEx native token),
- Combine all those services in a single application.
- Smaller trades may have the option for KYC, catering to users who prefer not to share their personal data.
- Transparent proof-of-reserves reporting.
- Very good app-store ratings (4.5 on 50,000+ ratings).
Cons:
- No tier 1 regulatory license (FCA, SEC, ASIC).
- History of a major hack in 2023 ($70 million).
- Not suitable for sale to residents of the USA, Canada or mainland China.
- Poorly regulated exchanges compared to fully licensed exchanges.
- A few customer reviews mention slow responses to advanced withdrawal questions.
Who should (and shouldn’t) use CoinEx?
For those outside the United States, Canada, and China who seek to trade a wide variety of altcoins without undergoing a full KYC procedure and are fine with the overall risk profile of an unregulated and lightly regulated crypto exchange, CoinEx is a good option. It is not ideal for newbies looking for a sense of security associated with a platform that is fully licensed and regulated by a Tier-1 authority, nor for anyone who intends to store large amounts for a prolonged period, without transferring them to a self-custodial wallet — a condition that applies to virtually any centralized exchange, but most importantly, CoinEx.
The same popular crypto trading tip that applies to any centralized exchange applies here as well: Only keep as much money on the exchange as you are dealing with in real-time; move larger amounts of money to your own wallet.
Frequently Asked Questions
Is CoinEx a scam?
No, CoinEx has been around since 2017, has more than 10 million registered users, and publishes proof-of-reserve audits. It is infamous for its hack in the past, but no credible evidence of it being an exit-scam or a scam.
Is CoinEx available to the U.S. residents?
No, after settling with the New York Attorney General in 2023, CoinEx no longer supports U.S. customers. There is also limited access for residents of Canada and Mainland China.
Does CoinEx’s user have lost money in the 2023 hack?
The funds were stolen from CoinEx’s hot wallets and CoinEx will fully compensate any user affected by this. There were no reports of user loss to the incident, although the number of confirmed users was not mentioned.
Does CoinEx require KYK?
Not for lesser trading restrictions. There is now limited trading without verification at CoinEx, but there are higher withdrawal limits for complete verification.
CoinEx is better than Binance or KuCoin?
The regulatory footprint and the fees vary amongst each platform. KuCoin is considered to be in a similar position to CoinEx, and Binance has been seeking out more licenses in recent years. The “better” option will depend on where you’re located and the kind of assets you’ll be trading.
Final Answer
CoinEx is a great, old, and trustworthy cryptocurrency exchange that has created a lot of valuable transparency measures such as proof of reserves and has a representative and easy-to-use user experience. However, it is not a Tier-1 regulated platform and the hack in 2023 is indeed a red flag. CoinEx is a viable choice if you are not residing in its limited countries and you know what you’re doing at its general risk level; just don’t use the word “safe” as you mean “risk free,” and never have more than you can afford to wait for or dispute.
The information in this article is not meant as a financial or investment recommendation. Trading cryptocurrencies is risky, and you should conduct your own investigation before engaging any trading exchange.
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