Binance users may not be able to withdraw their ETH for few hours
Binance, a leading cryptocurrency exchange, has said that deposits and withdrawals on the Ethereum network (ERC20) will be temporarily suspended starting August 31 at 6:25 am (UTC). This is because around the halving time, Binance will carry out wallet maintenance for the Ethereum network (ERC20). Maintenance will require three hours or more. Binance says it will resume deposits and withdrawals once maintenance is over, although it may not notify users in subsequent notices.
According to a statement made by Binance last week, ETH and ERC-20 token deposits and withdrawals on Binance will be momentarily halted twice in the next few weeks at about 11 a.m. UTC on Sept. 6 for the Bellatrix upgrade, and at 12 a.m. UTC on Sept. 15 for the Paris upgrade.
It says provide updates once both deposits and withdrawals resume after the upgrade.
This, it says, was necessary for its preparations for Ethereum’s shift to proof of stake, scheduled for mid-September. In a thread of tweets, it stated that “Ethereum will migrate to a PoS chain at approximately 12:30 am UTC on September 15, 2022.” Ahead of any possible ramifications from this event, Binance is taking steps to reduce trading risks and to keep user funds “SAFU.”
Binance is getting ready for a “merge”
This transition, called “The Merge”, moved Ethereum from PoW to a PoS consensus mechanism. Bellatrix, the consensus layer upgrade, and “Paris,” the execution layer upgrade, are the upgrades that will bring about this change.
It postulated two scenarios that might happen after the Merge and its contingent plans. First, if there is no fork and no new token is generated, Binance will resume ETH and ERC-20 token deposits and withdrawals as soon as possible.
Second, if an ETH fork results in the creation of a new token and two competing chains. The Ethereum POS chain will be identified by an ETH ticker, then users will be credited forked tokens based on a snapshot of their ETH balance.
Additionally, Binance said that it will temporarily suspend BETH deposits and withdrawals starting at 12:00 p.m. UTC on Sept. 14, 2022, and ending at 12:00 p.m. UTC on Sept. 16, 2022. It says that after the proof of stake transition, “ETH 2.0” staking on Binance will resume.
However, the withdrawal and redemption features of staking ETH will not be enabled until Ethereum Shanghai upgrades in a few months.
