Why Is Binance Suspend All Deposits And Withdrawals?

Binance introduces new measures to prevent the spread of leaks that have been affecting the cryptocurrency community. Potential users are being forcefully redirected to a verified trading page, which is part of Binance’s efforts to ensure user security. This has led many people to think that this was an intentional move by the exchange or even a sign of regulatory inaction . It’s all too easy for cryptocurrency exchanges to take advantage of their loopholes in SEC regulations and government approval, creating what some analysts have described as “pyramid scheme infrastructure.” Though not well known, it is possible for operators with the right amount of funding, network power, and expertise structure would be able to build up an unstoppable scheme through other platforms like Reddit or Telegram chat rooms where they could recruit other users unaware they conduct dodgy business practices. Binance CEO Changpeng Zhao confirmed on Twitter , stating via email: “It’s absolutely wrong! (But) We cannot deny there’s scalability issue…We were trying do our best to promote education about why withdrawals should be limited.” He added that he wanted more time before deciding if listing 50 projects was enough : “I believe 50 projects is good enough….it wouldn’t take long until we run out”. Some projects (and their supporters see it as censorship) are naturally skeptical over Binance clamping down on withdrawals rather than using age-old anti-money laundering techniques . Take Komodex for example who tweeted themselves demanding answers regarding what happened: