Binance To Suspend $ETH Deposits & Withdrawals During Ethereum Merge

Abigal Vee
August 26, 2022
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Binance bitcoin market mood

Crypto exchange Binance has already indicated support for Ethereum Merge, slated to occur next month. In a recent highlight of events, Binance has provided an update on what users should expect when The ETH Merge greets them. This includes suspension of deposits and withdrawals of ERC-20 tokens.

Binance will suspend deposits and withdrawals on September 6th and 15th

In an announcement on Thursday, Binance provided a notice regarding Ethereum Merge. Basically, Binance noted that it would be taking steps to mitigate the risks that the upgrade would bring. The exchange listed a series of actions it would take when The Merge eventually occurs.

Binance mentioned that it would be suspending deposits and withdrawals of ETH and all ERC-20 tokens. This suspension will occur on two occasions, during the Bellatrix consensus layer upgrade and the Paris execution layer upgrade. Both upgrades are likely to respectively occur at 11 AM (UTC), on September 6; and at 12 AM, September 15.

Furthermore, the exchange noted that it would resume normal deposits and withdrawals post-Merge if Ethereum Merge does not result in the creation of any new tokens. However, if separate chains are formed, Binance said it would use the ”ETH” ticker for the PoS chain. Additionally, the exchange will credit users’ accounts with the forked token at a 1:1 ratio. The snapshot taken before the Paris execution layer will determine the distribution.

Will Binance support Ethereum PoW Fork (ETHPoW)

Speaking further, Binance noted that spot trading for ETH and ERC-20 tokens will continue unaffected. Furthermore, while margin trading will continue, the exchange will pause borrowing on September 14th and 16th at midnight (UTC). Additionally, ETH Futures Trading will continue, but Binance will adjust a few parameters to mitigate risk due to high volatility.

All other services with ETH will continue unaffected. Nonetheless, Binance will suspend ETH borrowing and deposits and withdrawals of BETH (staked ETH on Binance). In addition to this, post-Merge, the Binance Pool will remove the ETH mining service.

Binance recently announced zero fee trading for the ETH/BUSD pair, as the Merge approaches. On August 10, the exchange also announced that it would support Ethereum Merge. Nonetheless, the exchange also noted that it is not completely ruling out support of “new forked tokens.”

Recall that Chandler Guo, prominent ETH miner, mentioed that he would be forking the Ethereum chain again. This would birth ETHPoW—a forked chain that would retain ETH mining post-Merge.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Abigal .V. is a cryptocurrency writer with over 4-years of writing experience. She focuses on news writing, and is skilled in sourcing hot topics. She’s a fan of cryptocurrencies and NFTs.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.