Binance to suspend ETH and WETH withdrawals and deposits before the Merge

By: Dickson Arinze

September 6, 2022 1:15 AM

On Monday, the cryptocurrency exchange Binance said that beginning at 2 am (UTC) on September 6th, it would suspend deposits and withdrawals of Ethereum (ETH) and Wrapped Ethereum (WETH) on some networks in preparation for Ethereum's Merge event.

The company announced which currencies and networks will be affected by the Merge. These include Ethereum (Arbitrum), Ethereum (OP), and WETH (RON). For Ethereum (ETH) and Wrapped Ethereum (WETH) deposits made on these networks during the suspension, the business has said that they would not be reimbursed, and customers will not be entitled to "forked token credit" in the event of a chain split."

Due to the ongoing merge, all financial activity on the aforementioned networks will be temporarily halted. In the event of a chain split, Binance claims this is being done to "ensure the allocation of forked tokens."

Binance stated that the temporary suspension of Ether (ETH) and Wrapped Ether (WETH) deposits and withdrawals on the affected networks is a precautionary measure and that the services will be restored once the networks are considered stable following the completion of the Merge. The aforementioned network interruptions will not affect Ethereum trading during the Merge.

An anticipated 99.95% decrease in the Ethereum network's energy consumption is expected after the long-awaited event.

However, the removal of $USDC from the exchange's list of tradable assets was also announced.

On Monday, Binance announced in a second official announcement that it will begin allowing users to automatically convert their USDC, USDP, and TUSD balances into the BUSD stable coin at a 1:1 ratio beginning on September 29. The exchange claims that this adjustment is being made "to boost liquidity and capital efficiency for users," and that it would not have any impact on customers' ability to withdraw USDC, USDP, or TUSD.