Crypto exchange Binance suspends trading | finder.com

Crypto exchange Binance suspends trading

Peter Terlato 8 February 2018

During system maintenance, a significant increase in users and activity led to the suspension of trade.

Cryptocurrency exchange Binance has temporarily ceased all trading and withdrawals after experiencing an “unforeseen slowdown” in a systems upgrade, which is now expected to extend beyond 24 hours.

The Hong Kong-based exchange, one of the largest in the world, has been down for more than 16 hours.

A tweet posted on the company’s official Twitter page on Wednesday afternoon revealed that Binance was performing system maintenance and that some users may experience a “temporary decrease” in performance.

Binance claims that during system maintenance, a significant increase in users and trading activity led to the suspension of trade. Following this, a delay in the speed of a data sync caused the downtime to be extended.

At the time of writing, Binance estimates all trading activity shall resume by 4 a.m. UTC Friday February 9. Additionally, Binance’s support page remains down and no new user tickets can be created.

Alternative exchanges to Binance

Binance’s Twitter account confirmed the setback and promised to provide updates every two hours.

“In the 30 minutes prior to the commencement of trading, users will be able to use utilize all other account related functions,” exchange operators said in a tweet posted on the company’s social media page.

Given the increasing occurrence of data breaches, scams, extortion and fraudulent activity prevalent in the cryptocurrency industry, nervous traders questioned whether the shutdown was perhaps related to a hack.

Controversial British-American computer programmer and businessman John McAfee voiced similar concerns.

Binance’s founder Changpeng Zhao took to Twitter to reassure users that no data had been lost in the closure.

Virtual currencies and the blockchain networks and exchanges that run them are bursting at the digital seams.

One month ago, a significant number of Binance users made attempts to sell-off their accounts, both for profit and due to uncertainty, following a brief lockout for necessary exchange infrastructure support upgrades.

Binance lifted its temporary ban on account registrations soon after but imposed limitations on the number of new users it would accept and adjusted its Binance Referral Program commission rebate from 50% to 20%.

The prominent trading exchange joins a growing list of major cryptocurrency platforms that have closed their doors to new clients. In mid-December US-based exchange Bittrex revealed it was forced to pause new sign-ups in order to upgrade support systems after receiving an “enormous” number of new account registrations.

UK-based online digital exchange CEX.IO also temporarily halted new registrations in December, allocating extra efforts and resources to processing the current queue of user transactions, verifications and requests.

Around the same time last year, Hong-Kong’s US$3 billion Bitfinex exchange began requesting an invitation code from all new traders. However, the company has not yet revealed how these codes are distributed.

“This pause for new account creation is a temporary measure. New account registration will resume by January 15th, 2018 at the latest,” Bitfinex Management said in a statement posted on their exchange website.

Kraken, which sits just outside CoinMarketCap’s top 10 exchanges by market capitalization, revealed that it was receiving 50,000 new account registrations and 10,000 new support tickets every day during late December.

This week, South Korean cryptocurrency exchange Coinpia disabled deposits and suspended trading as a result of new domestic legislation against anonymous accounts, according to an announcement on its website.

You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of the alternative coins on the market.

This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and our Privacy Policy.