Today, some users of the popular crypto exchange, KuCoin, took to Twitter to lament the halting of their withdrawals. Aside from KuCoin, major cryptocurrency exchanges are also facing some withdrawal issues in what has been a dramatic week for the cryptocurrency space.
One of the users on Twitter, identified as Mac, bemoaned how KuCoin halted his withdrawal request, asking him to provide some security information. To verify the request’s legitimacy, KuCoin has asked that the user provide a photograph with an identity document and a screenshot of his withdrawal history.
Another user, identified as Satoshi Stacker, said he encountered a similar issue. According to him, he was only able to withdraw after sending the identity photograph. The user reacted to the initial post by Mac, recalling the stress they went through before seeing to the root of the issue.
Stacker described the withdrawal took about twenty minutes before completion. Lastly, Stacker concluded that it hadn’t been a good time for the entire cryptocurrency space, referring to the ongoing drama surrounding another cryptocurrency exchange, FTX.
Meanwhile, the service restrictions were not only limited to KuCoin users. Reports also revealed that users of fellow exchanges, like Kraken and Coinbase, also endured connectivity issues. Although both Coinbase and Kraken have already fixed their issues. In another development, FTX users experienced withdrawal difficulties some days back.
Call for Decentralized Exchanges
As a result of these withdrawal issues, speculations have arisen that centralized exchanges lack reliability, which in turn has led to the emergence of decentralized exchanges (DEXs) and hardware wallets, as well as the possibility that the exchange may be experiencing security lapses.
In that regard, a Twitter user identified as DmcryptoNC alleged that centralized exchanges are no longer safe to keep funds. The user advised KuCoin users and others patronizing centralized exchanges to subscribe to self-custodial exchanges. DmcryptoNC tweeted that.
Dont f hold funds on CEX. The end. Self custodial is the only way to protect your capital.
— DMcryptoNC (@CRYPTOdmnc) November 9, 2022
Before now, cryptocurrency investors have sorted out other options for securing their assets. At the start of the current bear market, many centralized cryptocurrency exchanges endured different crises, leaving investors at the receiving end.
On the Flipside
There have been recent speculations that KuCoin will fall after the recent FTX debacle. However, the KuCoin team responded that they were here to stay and take security seriously.Why You Should Care
Recent incidents indicate that centralized exchange users face many difficulties due to halted withdrawals. This called for the use of more decentralized exchanges, and this may only increase in the future.
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