• Binance, a top global crypto exchange, is working on integrating Bitcoin (BTC) deposits and withdrawals via the Lightning Network.
• The Lightning Network is a layer-2 scaling solution built on top of Bitcoin that aims to enable instant and cost-effective transactions for BTC.
• The U.S. Securities and Exchange Commission recently sued Binance and their chief executive for allegedly violating securities laws.
Binance Enables Bitcoin (BTC) Deposits & Withdrawals via Lightning Network
Binance, one of the world’s leading cryptocurrency exchanges, has officially begun integrating Bitcoin (BTC) deposits and withdrawals via the Lightning Network. The network is a Layer-2 scaling solution built atop the Bitcoin blockchain which seeks to provide faster, cheaper transactions with BTC.
Lightning Network Aimed at Preventing Congestion Issues
The move was prompted by an incident earlier this year in which Binance temporarily suspended BTC withdrawals due to network congestion issues. According to Changpeng Zhao, CEO of Binance, this halt was caused by significant fluctuations in Bitcoin network fees due to increased demand for certain BRC-20 tokens. By implementing the Lightning Network into its platform, Binance hopes this will help prevent such congestion issues from occurring again in the future.
SEC Sues Binance & Chief Executive
In mid-June 2021, the U.S Securities and Exchange Commission filed a lawsuit against both Binance and Changpeng Zhao for allegedly violating multiple securities laws as well as operating “an extensive web of deception” while evading applicable regulations set forth by US authorities.
Tech Work Still Needed Before Full Integration
Despite now running test Lightning nodes on its platform, there are still several technical tasks that need completion before full integration can be achieved according to an announcement made by Binance earlier this week. Once complete however users should see a marked improvement in both speed and cost when depositing or withdrawing funds using BTC on the exchange’s platform.
Overall it appears that both sides are currently making progress towards full integration of the Lighting Network onto the Binance platform; however until then users may still experience delays or other inconveniences regarding BTC deposits or withdrawals on occasion due to heavy traffic/demand placed upon the exchange’s servers from time to time