• Tue. Nov 2nd, 2021

Binance Suspends Digital Currency Withdrawals: What’s Happening?

ByHazel R. Lang

Nov 2, 2021

A few days ago, CoinGeek reported how the Coinbase cryptocurrency exchange went offline during another market downturn. Binance twice suspended all digital currency withdrawals on Monday, citing a backlog as the reason.

Withdrawals were initially suspended and resumed approximately 25 minutes later before being suspended and resumed again. What is happening at Binance and what does it mean for the decentralized, unauthorized narrative promoted by Binance CEO Changpeng Zhao and others?

Binance’s Shadier Conduct

As stated above, Zhao likes to portray himself as one of the darlings of the “crypto” movement. He is often found on Twitter promoting misleading ideas about decentralization, unauthorized access to digital currencies, uncensored transactions, and more. However, a closer analysis of Binance and his conduct shows that this is almost the exact opposite of what he portrays in public.

These withdrawal suspensions are a prime example of the shady behavior that characterizes the company. He is accused of manipulating digital currency markets, has been blocked or banned in many law-abiding countries, and has moved from country to country in an attempt to avoid regulatory compliance.

As it does with the main proponents of the anarcho-capitalist mindset that currently rules digital currency markets, Binance is pretending to comply with regulations, but its actions paint a very different picture. You might wonder why a company with nothing to hide is so eager to avoid opening its accounts to regulators and accepting basic protections for customers.

What prompted Binance to suspend withdrawals?

Binance cited a backlog as the reason for the action, and while that may or may not be the case, it fatally exposes many of the myths surrounding the stories Binance likes to tell. How are digital currencies decentralized, unlicensed, or uncensored if a business has the power to freeze all transactions for a period of time?

Could a more plausible reason for the withdrawal suspension be a large number of customers attempting to make gains on coins even like Shiba Inu, for which Binance might not have the cash on hand? Delaying withdrawals is a favorite tactic of unregulated online casinos when faced with big wins. Is Binance Inspired by the iGaming Offshore Playbook? It’s not clear, and it’s a question best left to investigators who are undoubtedly watching Binance and its every move.

What is clear is that Binance customers are not happy. Many have taken to Twitter and other social media platforms to call the exchange, while others have pointed out the need for token exchanges over so-called decentralized protocols that are not controlled by companies.

Everything you think you know about this industry is a lie

Events such as a few temporary withdrawal suspensions by a major digital currency exchange office don’t seem much isolated, but as they add up at every level, they reveal a truth that many do not want to acknowledge; almost everything people think they know about “crypto” is a lie.

As the shares of Binance and other exchanges like Coinbase and BitMEX have repeatedly shown, the industry is largely in the hands of self-interested criminals who balk at regulation as they milk the masses against them. -trading and charging them exorbitant access fees. the new financial system they claim to be more inclusive and accessible.

In its current state, the digital currency space is nothing more than an unregulated global casino, and Binance is happy to continue to collect fees to facilitate that. In a regulated environment, he would have to prove his backlog claims as the main reason for suspending withdrawals, but as it stands, he won’t have to and will continue to mislead newcomers. and those who have not yet woken up to the game.

However, despite the best efforts of special interests, this era of the Old West is coming to an end. Powerful regulators have pledged to crack down across the world, court cases threaten to expose the lie that coins can’t be moved without private keys, and more and more people are starting to question the narratives that have been touted as the tough-talking crypto. -the anarchists bend one after the other in the face of the law.

At this time, it is impossible to prove why Binance really suspended withdrawals. However, as regulations are enacted in more and more countries, it will become easier to determine the facts in the midst of the fiction.

To follow CoinGeek Crypto Crime Cartel series, which plunges into the flow of a-groups of BitMEX To Binance, Bitcoin.com, Block flow, Metamorphose, Coinbase, Ripple and
Ethereum– who have co-opted the digital asset revolution and turned the industry into a minefield for naive (and even experienced) market players.

New to Bitcoin? Discover CoinGeek Bitcoin for beginners section, the ultimate resource guide to learning more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.

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