Binance, the world's largest cryptocurrency exchange, has temporarily suspended withdrawals of Bitcoin for the second time in less than 12 hours due to congestion on the token's network. This move comes after a similar action was taken on Sunday when Bitcoin experienced a 3% decline and traded at roughly $28,200 as of 9:44 a.m. in Singapore.
Earlier this year, Bitcoin developer Casey Rodarmor released a protocol that allowed users to mint nonfungible tokens (NFTs) on the network for the first time. However, despite advancements like these, Binance halted bitcoin withdrawals twice within such a short period—first late on Sunday (May 7) and then again early Monday (May 8) morning—due to heavy volumes and an increase in processing fees.
In response to these challenges, Binance replaced pending bitcoin withdrawal transactions with higher fees so that they would be prioritized by mining pools. As part of their official statement explaining their decision, Binance said:
The halt triggered further concerns among investors leading to Bitcoin's lowest price level in a week ─ $28,162 ─ which is attributed primarily to both instances where Binance had stopped its operations.
This series of events follows April’s incident when Binance called off its plans for acquiring bankrupt crypto lender Voyager Digital for $1 billion after negotiations fell through with FTX – another prominent cryptocurrency trading platform now marred by controversy.
As regulators around the globe tighten their grip on cryptocurrencies and scrutinize exchanges more closely than ever before; smooth functioning of platforms like Binance becomes essential not just for traders but also for maintaining overall confidence within digital asset markets.