Binance has issued a notice to users about a forthcoming withdrawal and deposit suspension on its Ethereum network wallet (ERC20). It revealed that the platform would carry out a security update on ERC20 on 31 August.
Binance To Suspend Withdrawals Of ETH On Specific Dates
According to reports, users would not be able to withdraw, or deposit ERC20 of 6:25 am on August 31. Binance is said to have wallet maintenance scheduled for the network.
However, the giant crypto exchange added in its notice that the suspension would only be for a few hours. It stated that the maintenance would take just 3 hours, and afterward, the network would resume the whole operation.
CypherMind-HQ.com Artificial Intelligence Crypto Trading System – Get Ahead of the Curve with this sophisticated AI system! Harness the power of advanced algorithms and level up your crypto trading game with CypherMindHQ. Learn more today!
Binance added that once the maintenance is completed and ERC20 becomes functional, it might issue another public notice. In addition, Binance made an announcement previously that in upcoming weeks, it would temporarily halt ETH and ERC20 withdrawals.
The suspension, according to the statement, would come up twice for two different upgrades. The Bellatrix upgrade is coming up by September 6, 11 am. UTC, and the Paris Upgrade will come up by September 15, 12 am UTC.
During the two periods, users would not be able to withdraw both ETH and ERC20, according to the report. Binance further explained that the suspension is necessary as it prepares for the prolonged Ethereum Merge in mid-September.
The exchange added that Ethereum’s migration from PoW to PoS will happen at around 12:30 am UTC by Sept. 15. Hence, Binance aimed the suspension at ensuring a smooth flow with the transition and without any exposure to theft, risk, or hindrance.
Binance Prepares Floor For Ethereum’s Merge
The prolonged Merge would transit the Ethereum network from its current Proof-of-Work to a Proof-of-Stake consensus model. Meanwhile, Bellatrix is the upgrade for consensus upgrade, while Paris is the upgrade for the execution layer.
The two upgrades would prepare the floor for Ethereum’s transition. In line with this upcoming development, Binance stated two possible actions it might take after the upgrade.
It said during the upgrade if a fork happens and Ethereum issues another token, then it would permanently suspend ETH and ERC20 tokens. Hence, users would receive the new token according to the amount of ETH or ERC20 initially.
However, it said if there were no fork or new token, it would resume the whole operation so people could withdraw and deposit as soon as possible. Furthermore, Binance planned to momentarily halt the deposit and withdrawal of BETH from 14th September to 16th September 2022.
It added that users could continue to stake on Binance after Ethereum completes its transition. Nonetheless, no withdrawal of staked ETH until Ethereum launched the Shanghai upgrade in a few months.