Users are selling their Binance accounts due to temporary registrations pause

Posted: 9 January 2021 3:39 pm

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Warning: Both Binance and Bitfinex offer cryptocurrency derivatives, which the regulator banned from sale to UK consumers in January 2021.

Binance, one of the fastest growing cryptocurrency exchanges, temporarily disabled new user registrations this week and has noticed backlash, in the form of an increasing number of users attempting to sell their accounts.

On Wednesday, the Binance Team issued a statement on the company’s website declaring a provisional suspension of the creation of any new accounts, which it attributed to an “overwhelming surge in popularity”.

Alternative exchanges

The statement also reveals that the postponement will allow for necessary infrastructure support upgrades.

In a separate statement, the Binance Team said it had noticed an “increase in the number of users attempting to resell their accounts”. The company warned users that the selling of accounts posed serious security risks.

“Binance will not be responsible for any losses related to such activities,” the most recent statement said.

A number of users took to social media to vent their frustrations and propose the sale of their accounts.

At almost $10 billion in volume, Binance is the biggest cryptocurrency exchange, according to CoinMarketCap.

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.

Bittrex is the third largest cryptocurrency exchange by volume, according to the latest CoinMarketCap data.

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.

Due to the cryptocurrency market’s modernity and intense volatility, complications are frequently arising. In January, a number of prepaid cryptocurrency debit card providers had their services suspended by Visa.

Interested in learning more about cryptocurrency? Check out our A-Z list of the most popular altcoins.

Disclaimer: 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.

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