Binance embraces Lightning Network for faster Bitcoin transactions

Binance has taken a significant step towards integrating Bitcoin Lightning for withdrawal and deposit on its platform by launching new Lightning nodes. These nodes, set up by Binance, are visible on the map and are confirmed to be part of the payment integration process.

The importance of integrating with the Lightning Network became even more apparent when Binance faced delays in Bitcoin withdrawals due to a high volume of pending transactions. In response, Binance temporarily suspended Bitcoin withdrawals from the platform, but the service has since been reopened.

In addition to the pending withdrawals, Binance also experienced an unexpected increase in gas fees for withdrawals. Prior to reopening, Binance informed users that it would raise the fee for pending BTC withdrawal transactions to ensure they were picked up by mining pools.

Following the reopening, the world’s largest crypto exchange in terms of transaction volume and customer base explained that it has adjusted its Bitcoin transaction fees to prevent a recurrence of this issue. It is also closely monitoring on-chain activities to enhance user services.

Furthermore, Binance mentioned that its team has been actively working on enabling BTC Lightning Network withdrawals, which will be beneficial in similar scenarios.

Binance, Binance.US, and the SEC

While the Lightning Network and payment system gain traction, Binance finds itself entangled in legal disputes with the SEC.

Following accusations of operating unlawfully and offering unregistered securities, Binance managed to secure its funds at Binance.US, avoiding seizure by the SEC.

Rather than confiscating the funds, Binance, Binance.US, and the SEC reached a temporary agreement that placed control of all funds in Binance.US in the hands of select staff members.

Read also;

Binance Launches a Metaverse Investment Competition, Featuring Web3 Startups