Cryptocurrency exchange giant BINANCE is gearing up for yet another significant upgrade to its wallet infrastructure, as it issues a warning to its users regarding an upcoming address migration. In an official announcement on July 6, Binance revealed its plans to retire selected deposit addresses in stages, as part of a comprehensive network address migration scheduled for the third quarter of 2023.
Wide-Ranging Impact on Cryptocurrencies
The forthcoming wallet upgrade by Binance is set to have a substantial impact on a total of 40 cryptocurrencies. Notable digital assets such as Bitcoin (BTC), Bitcoin Cash (BCH), Dogecoin (DOGE), (XRP), (SOL), Cardano (ADA), (XMR), (LTC), Polkadot (DOT), and others will be affected.
Apart from the address migration, Binance has also made the decision to deactivate memos. Memos, also known as destination tags, serve as an essential address feature required to identify the recipient of a transaction beyond the wallet address itself. Since centralized exchanges like Binance, employ a single wallet address for all users, the tag or memo is crucial for determining the individual account.
User Notifications and Encouragement
Binance has assured its user base that it will send out notifications to those impacted by these changes. The exchange strongly advises all affected account holders to acquire a new address and memo as soon as they receive the notification.
Binance said that users should continue using their existing deposit addresses if they have not received an official notification from the exchange. It states:
"Only impacted users who receive notifications from Binance are required to obtain a new deposit address and memo, if applicable, before the expiry date. [...] Old deposit addresses will expire upon obtaining a new address."
Expired Addresses and Deposit Retrieval
In the event that funds are deposited into an expired address, Binance assures users that they will not be lost. However, unlike regular deposits, these funds will not be automatically credited. Users will need to manually credit their deposits via the transaction history page.
Binance's upcoming wallet upgrades are part of the exchange's ongoing efforts to enhance efficiency and strengthen fund security for its users. Similar upgrades were previously implemented in April 2023, which involved disabling old deposit addresses for networks such as Ether (ETH), various EVM-compatible coins, Binance Coin (BNB), and more.
