The Binance platform has suddenly suspended the ability to withdraw bitcoins from a trading user who wanted to withdraw his funds to a wallet using the “shuffle transactions” service.

It is a harsh reminder that cryptocurrency exchanges are not the ideal place to hold cryptocurrencies, especially if someone wishes to remain anonymous.

Account suspension

Twitter user “Catxolotl” received a message from Singapore’s Binance platform that withdrawals were suspended and suspended in his account due to “risk management”.

Binance believes the user was using transaction-mixing service CoinJoin, which is part of the privacy-focused Wasabi wallet.

to declare This user states:

I’m so worried that Binance knows I’m going to send my money to Wasabi, all I have to do is enter the receiving address, nothing more.

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In an effort to fix the issue, Binance has asked this user to provide some personal information including:

• The purpose of the withdrawal process to the “Wasabi” wallet.
• Supporting documents.
• current occupation.
• annual income.

In response to what was posted by the user “Catxolotl”, a Twitter user confirmed that freezing funds and requesting information is a violation of privacy and asked if the platform had made it clear in its terms that users might be banned from withdrawing bitcoin.

While the merits of this case continue, the phrase comes to mind:

“If you don’t own your private keys, you don’t own your cryptocurrency.”

The whole philosophy behind Bitcoin and other cryptocurrencies is their connection to decentralization.

Giving cryptocurrency to crypto-exchange giants like Binance simply means giving up the possibility of controlling one’s own money.

It is also a reminder to people of the need to be sure and familiarize themselves with the specifics of the KYC/AML protocols and money laundering systems in cryptocurrency trading platforms.

Therefore, we find that the decentralized and peer-to-peer trading platforms are an ideal option for many.

Read:US Treasury targets stablecoins in latest regulatory risk assessment

It provides traders with more direct control over their assets as well as an additional layer of anonymity.

About “Wasabi” Wallet and CoinJoin

“CoinJoin” was first introduced by Bitcoin contributor Gregory Maxwell in 2013, which is one of the attempts to provide practical solutions to the biggest challenge facing Bitcoin which is the privacy factor.

Read:Investment bank “Goldman Sachs” begins offering dollar loans secured by “Bitcoin”

While the addresses are a pseudonym, all transactions are publicly recorded on the blockchain, which can undermine user privacy.

Wasabi uses the CoinJoin feature to try and make anonymity largely possible.

This feature allows users to group their wallet balances together, effectively shuffling Bitcoin to hide sender and recipient information.

Unfortunately in this case the user “Catxolotl” error was allowing Binance to connect between the two wallets.

It was better for him to transfer the money to a regular wallet and then transfer it later to a private wallet.

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