Home Business Binance suspends digital currency withdrawals: Whats going on?
A couple of days ago, CoinGeek reported how cryptocurrency exchange Coinbase went offline during another market pullback. On Monday, Binance has twice suspended all digital currency withdrawals citing a backlog because the reason.
Withdrawals were initially suspended and resumed about 25 minutes later before being suspended and resumed again. Whats going on at Binance, and what does this mean for the decentralized, permissionless narrative promoted by Binance CEO Changpeng Zhao among others?
Binance has suspended ALL #Bitcoin withdrawals!
Bitcoin Archive (@BTC_Archive) November 1, 2021
More shady conduct by Binance
As mentioned above, Zhao loves to paint himself among the darlings of the crypto movement. He is able to often be entirely on Twitter promoting misleading ideas about decentralization, permissionless usage of digital currencies, uncensorable transactions, etc. However, a deeper analysis of Binance and its own conduct demonstrates its almost the precise opposite of what it portrays in public areas.
These withdrawal suspensions certainly are a prime exemplory case of the shady behavior that typifies the firm. It stands accused of manipulating digital foreign currency markets, has been blocked or banned in lots of law-abiding countries and contains moved in one country to another as it tries in order to avoid compliance with regulations.
Since it does with the core tenants of the anarcho-capitalist mindset that currently rules digital foreign currency markets, Binance pays lip service to regulation, but its actions paint an extremely different picture. One might ask why an organization with nothing to cover up is so keen in order to avoid opening its books to regulators and agreeing to basic customer protections.
What caused Binance to suspend withdrawals?
Binance cited a backlog because the reason behind the action, even though this may or may possibly not be the case, it fatally exposes lots of the myths surrounding the narratives Binance loves to spin. In what manner are digital currencies decentralized, permissionless, or uncensorable if one company gets the capacity to freeze all transactions for just about any time frame?
Could a far more plausible reason behind the withdrawal suspension be considered a large numbers of customers wanting to realize gains on meme coins like Shiba Inu, that Binance might possibly not have the cash accessible? Delaying withdrawals is really a favorite tactic of unregulated online casinos when confronted with big wins. Is Binance going for a leaf from the offshore iGaming playbook? Its unclear, which is really a question better left to the investigators who without doubt are watching Binance and its own every move.
What’s clear is that Binance customers arent happy. Many took to Twitter along with other social media marketing platforms to call the exchange out, while some highlighted the necessity for token exchanges to occur on so-called decentralized protocols that arent controlled by corporations.
All you think you know concerning this industry is really a lie
Events like a handful of temporary withdrawal suspensions by way of a major digital forex dont look like much in isolation, but because they add up over the board, they expose a truth many dont desire to acknowledge; almost anything people think they find out about crypto is really a lie.
Because the actions of Binance along with other exchanges like Coinbase and BitMEX have repeatedly shown, the is basically in the hands of self-interested criminals who balk at regulation because they milk the masses by both counter-trading them and charging them extortionate fees to gain access to the new economic climate they claim could be more inclusive and accessible.
In its present state, the digital currency space is only a worldwide, unregulated casino, and Binance is pleased to continue raking in fees to facilitate this. In a regulated environment, it could need to prove its claims of a backlog because the major reason for suspending withdrawals, but as things stand, it wont want to do so and will continue steadily to mislead newcomers and the ones who havent yet woken around the game.
However, regardless of the best efforts of vested interests, this Wild West era is arriving at a finish. Powerful regulators have vowed to crack down throughout the world, court cases threaten to expose the lie that coins cant be moved without private keys, and much more and more folks are starting to question the narratives which have been spun because the tough-talking crypto-anarchists fold one after another when confronted with the law.
At this time, its impossible to prove why Binance really suspended withdrawals. However, as regulations pass into law in increasingly more countries, it’ll become better to determine the reality amidst the fiction.
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