Payout suspended for risk management: what does that mean? – CryptoGlobe | Region & Cash

Users of leading crypto exchange Binance may occasionally encounter an error message and not know what it means. One of the more worrying error messages is the following: “Payout suspended due to risk management.”

There are several reasons why a user may experience this error and their withdrawals from Binance will be temporarily suspended.

Read on to find out why you’re getting this error and what you can do to get your account working again.

Why can’t I withdraw or trade?

Getting an unexpected error message or having your account withdrawals temporarily suspended can be frustrating. Luckily, Binance Support offers a troubleshooting page to help users figure out what’s going on.

According to Binance, the exchange’s automated system occasionally blocks a user’s ability to withdraw funds from their account under certain circumstances. While there are a few reasons why a user may experience this error, one of the most common causes is being blocked on new ACH (Automated Clearing House) and debit deposits.

Binance requires all new ACH and debit deposits to be subject to a short withdrawal hold period. During this period, users cannot withdraw USD (or their local fiat currency) or cryptoassets funded by the deposit. Debit deposits are subject to a 5-day withdrawal hold, while ACH requires a 10-day withdrawal hold. This means that if a user were to make a deposit using a new ACH, they would have to wait 10 days to withdraw those funds.

One explanation for the suspension is that Binance offers users the convenience of pre-crediting their account when an ACH or debit card deposit is created. In reality, it takes 2-7 business days from the original date of the transaction for Binance to charge the connected payment method, which means that the funds deposited must remain in the account during this time.

Negative balance

Users can also see the error message that the withdrawal has been suspended due to risk management when the account balance is negative. According to Binance, users may encounter this error when they have opted to fund their account, but the payment provider was unable to withdraw the funds from the relevant bank account.

Binance may be unable to withdraw funds from your account for a number of reasons including:

  1. The deposit was revoked by the banking institution even though it was authorized by the user. The bank may have blocked payment for the transaction, the transaction may have been flagged for suspicious activity, or a dispute related to the transaction may have been filed.
  2. If a user does not have enough funds in their bank account while the deposit is being processed, they will receive an error message that their withdrawal has been suspended.
  3. The bank account was closed before the deposit was processed.
  4. The balance on the account was not fully available for withdrawal, e.g. B. with a check deposit.

Users can navigate to the Deposit and Withdrawal History page for more information on the status of their deposit.

How to restore access to negative balance withdrawals

If a user receives an error message that their withdrawal has been suspended, they need to go through the process to regain access to their funds.

To regain access, Binance requires users to settle their pending balance by making a new deposit. Since Binance pre-credits a user’s account, their system sets up deposit blocks to prevent an account from going negative. Users can fund their balance using a number of different deposit options including ACH, direct debit or domestic wire transfer.

Also Read: Where is Binance located?

Account verification and recent account changes

Although less common, Binance may also block the withdrawal feature on a user’s account due to account verification. According to the exchange, the firm needs time to verify a user’s identity before granting access to withdrawals. Binance asks users to contact their support team and provide the necessary documentation in case their account needs to be verified.

Binance may also occasionally suspend an account if changes have been made recently. For example, the exchange is temporarily disabling a user’s ability to withdraw funds from their account if they contact the support team to reset their two-factor authentication. In these situations, the exchange asks users to be patient and wait at least 48 hours for their withdrawal feature to be restored.

policy violations

Binance has the right to suspend withdrawals to accounts violating the policies outlined in the exchange’s Terms of Service. The exchange says such violations can result in an account being frozen or closed and include using false information, unlawful use of the platform, virus facilitation, use of an anonymizing proxy and suspicious behavior.

Although these cases are rare and may vary individually, Binance urges users whose accounts have been suspended to contact the support team for assistance.

Troubleshooting in the process

While Binance’s support team is generally a helpful resource for exchange-related issues, several members of the crypto community have offered suggestions for users who continue to have issues related to suspending withdrawals. Some users have recommended using an alternative method of logging into the exchange. For users who are getting the error message through the mobile app, it is recommended to switch to the desktop browser to see if the problem persists and vice versa.

Other users recommend ensuring an account is fully verified with the correct documentation, including the steps associated with Binance facial verification. Binance is required by both security and know-your-customer policies to obtain identity verification of the exchange’s users.

Be sure to rule out any other reasons why a temporary withdrawal might be suspended, such as: B. recently changing your password or performing a system upgrade. In such cases, it usually takes at least 48 hours for the account to be recovered.

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