Binance Suspends Bitcoin Withdrawals Twice in 12 Hours Due to Unprocessed Transactions Build-Up
Amid increasing global regulatory scrutiny, including in the US, the world's largest cryptocurrency exchange, Binance, has attributed its service suspension to insufficient fees offered to crypto miners for processing bitcoin transactions.
Because Bitcoin
May 8, 2023
South China Morning Post reported that Binance, the leading cryptocurrency exchange, halted Bitcoin withdrawals twice in less than a day, explaining that the backlog was due to unprocessed transactions caused by inadequate fees paid to crypto miners; the exchange later posted on Twitter that it would increase the fees to ensure the mining pools could pick up the transactions.
After a hiatus of roughly two and a half hours, Binance recommenced Bitcoin withdrawals and stated that it had modified its fees to avoid a recurrence of similar events; the exchange tweeted that it regarded the episode as a chance to learn and prevent future incidents.
The suspension was initiated following another suspension of bitcoin withdrawals for nearly an hour on Sunday night, caused by a "congestion issue," while in March, the exchange also suspended spot trading, deposits, and withdrawals temporarily due to technical problems.
On Monday afternoon, Bitcoin's price was over US$27,900, having pulled back from its 10-month peak of more than US$30,500 in mid-April, with Binance accounting for 92% of the world's bitcoin spot trading volume at the end of 2022, according to Arcane Research.
Resources: