Binance is the biggest cryptocurrency exchange in the world, with millions of concurrent users looking to trade over 700 listed cryptocurrencies on the platform each time. That said, sometimes, investors aren't able to withdraw their assets from their accounts with a rejection notice. The reasons can vary but can become very confusing for the investor who is left hanging.
This guide explains all the reasons that can lead to Binance withdrawal failure. We will also cover the tips investors can follow to troubleshoot those issues and withdraw their amounts without rejection.
Reasons Your Binance Withdrawal Is Rejected
These are the most common explanations (and solutions) if a Binance withdrawal request has failed or is rejected:
- Binance account is not verified
- Negative account balance
- Withdrawing below the minimum amount
- Withdrawing above the daily withdrawal limit
- Changed password or 2FA
- Violating Binance policies
- Schedule wallet maintenance
- Invalid wallet address
- Blockchain network is busy
- Invalid memo or tag
Explanation of Why Binance Withdrawals Can Fail
Reason 1: The account is not verified
The most common reason why Binance withdrawals can fail is a lack of account verification. This reason is most applicable for individuals that want to cash out from Binance and withdraw money to a bank account.
To withdraw fiat currency from Binance, there is a mandatory Know-Your-Customer (KYC) process. The exact requirements to complete this stage can vary in different countries but follow the same principles. That is, to ensure the account matches the real person. If a user has not fully submitted their details, fiat withdrawals can be restricted or rejected. However, sometimes database issues can cause some user details to be deleted – which can also halt the withdrawals.
Solution: Complete the "Verified" KYC level which allows up to $50,000 in fiat withdrawals per day. The Binance verification approval time can take up to 15 minutes. If there are issues or difficulties with submitting the required documents, contact the Binance team to get the verification issue sorted. The team may ask for additional documentation.
Reason 2: Account balance is negative
Another common reason for a failed withdrawal request on Binance is due to having a negative account balance. In such instances, users receive an alert that their account has been suspended due to risk management. Even when the user's payment provider attempts to pull the funds from the bank account, a negative account balance can still occur due to the following reasons:
- The Banking Institution has revoked the authorized deposit. Binance has started to obtain licenses in many countries – coming under the purview of the authorities, such as banking institutions. If the banking institution puts a stop-payment tag on the account, every going through that account is flagged as suspicious. It also happens if someone else has filed a dispute over the Binance account.
- Funds are not fully available for withdrawal. If the account does not have sufficient funds, a user would be unable to withdraw from their Binance portfolios.
Solution: The solution to this issue is to restore access to the account. Investors must do this by settling the outstanding balance using a new deposit to offset the negative balance.
Reason 3: Withdrawing below the threshold amount
Binance has put in place a minimum limit on the withdrawal amounts per cryptocurrency. For example, there is a minimum withdrawal amount for Bitcoin of 0.001 BTC. Likewise, for Ethereum the minimum withdrawal limit is 0.0098 ETH using the ERC-20 blockchain network. Withdrawing below these threshold amounts for each asset will result in a failed withdrawal from Binance.
Solution: Before making a withdrawal request, visit the Binance fees and limits webpage which lists all of the supported crytocurrency. The minimum withdrawal amount is shown for each blockchain network. Ensure the amount of crypto exceeds these values to prevent the withdrawal from being rejected.
Reason 4: Withdrawing above the daily limit
In addition to minimum limits on withdrawals, Binance also limits how much investors can withdraw from their portfolios in 24 hours. Like the minimum withdrawal limits, this too varies for different cryptocurrencies. Another factor that sets the limit is the account KYC verification level.
There are essentially 3 different verification levels for individuals which are "Unverified", "Verified" and "Verified Plus." The withdrawal limits are as follows:
|KYC Level||Max Fiat Withdrawal Per Day||Max Crypto Withdrawal Per Day|
|Unverified||Not allowed||0.06 BTC|
|Verified Plus||$2,000,000||8,000,000 BUSD|
For example, an unverified has a maximum withdrawal limit of 0.06 BTC within a 24-hour period. This is the equivalent of $1,200 at current prices. Therefore, withdrawing over this amount with result in a rejected withdrawal request. Similarly, attempting to withdraw more than $50,000 within a 24-hour period will also be rejected for "Verified" accounts.
Solution: There are two solutions to mitigate failed withdrawal requests on Binance due to maximum amounts. Firstly, individuals can upgrade the account verification status to the next level to increase the withdrawal maximum for fiat and crypto. Secondly, spread the withdrawal over several days to keep it under the 24-hour limit.
Reason 5: Changing password or 2FA
If an individual has changed the personal information within the Binance account, those changes can take some time to full effect. For example, Binance implements additional protection measures by temporarily suspending withdrawals for 24 or 48 hours when changing the account password. While the new password can take 1 or 2 hours to take effect, any withdrawals from Binance will be rejected for 24 - 48 hours.
Another reason that can reject withdrawals is making changes to the account's two-factor authentication preferences. They must wait a period of time for the new information to be updated before they can withdraw from Binance.
Solution: Reaching out to the Binance customer support official can help customers sort out their issues regarding recent account changes.
Reason 6: Violating Binance policies
Here is a list of policy violations that Binance warns of on the official website:
- Using False Information: Providing false information to Binance during the sign-up stage is grounds for account termination. It is one of the reasons why Binance can take up to 10 days to verify some accounts. Binance has grown warier about false information over the last few months due to the rise of crypto scams and exchange hacks – a large percentage of which is due to false information.
- Unlawfully using the platform: Using the platform for anything other than trading, depositing, earning interest, providing liquidity, buying NFTs, or engaging in certain crypto offerings is considered an unlawful use of the platform. Binance has taken more stringent measures after a Reuters article painted Binance as a den of fraudsters, drug traffickers, and hackers. While Binance also retorted against the article, it has ramped up its licensing procedures.
- Facilitating viruses: If any user shares spam filled on the platform or does anything that causes other investors' systems to be harmed, Binance is obligated to halt the withdrawals of that user upon receiving a complaint about it.
- Using an anonymizing proxy: Binance, despite being the biggest cryptocurrency exchange, isn't available in all countries. That leads some users to try to access the website using anonymizing proxy and some to use VPN. Binance has issued warnings to users attempting to access the platform using a VPN and anonymizing proxy.
- Any suspicious activity: If an investor does anything that sets red flags on the platform, Binance is obligated to block that user immediately. It causes withdrawals to be halted.
Solution: Comply with Binance's Terms and Conditions. Investors who believe they have been falsely accused of violating the Binance policies must contact the finance team to plead their case. The best way to do this is to contact the Binance support staff.
Reason 7: Scheduled wallet maintenance
Binance schedules planned maintenance of wallets to make necessary changes or perform administration duties. During these periods, withdrawals are not permitted and will be rejected. Binance does provide early notification of the designated wallets that will be temporarily suspended for maintenance.
Solution: Check the Binance Announcement page for upcoming and current wallet maintenance. The notification will provide the date range and the estimated number of hours before withdrawals can be made. Binance will notify when the maintenance is complete on its website and social media channels.
Reason 8: Invalid wallet address
A cryptocurrency address determines the location of the wallet address on the blockchain. The withdrawal process will fail if the user has entered an incorrect address. That is, Binance will display an "Invalid address" error if the entered address does not match the blockchain network of the destination wallet.
Solution: Double-check the public wallet address of the destination exchange, platform, or wallet entered into Binance when making a withdrawal. It is recommended to click on the "copy" symbol or scan the QR code to avoid manually typing in the address and making a mistake. For more information, we have a full guide on how to send cryptocurrency and important tips to ensure a valid transaction occurs.
Reason 9: Blockchain network is congested
Another major reason that can cause an unsuccessful Binance withdrawal is sudden network congestion. Concurrent transactions and slow blockchains are the culprits behind this issue. When this occurs, users will be presented with a "network busy" message on Binance. This has been an issue with Bitcoin in particular as the Bitcoin transaction speed is slow in relation to other coins.
Solution: If a “Network busy” message is displayed in Binance when a withdrawal request has been made, the two options to follow next are:
- Wait for a few hours before initiating the transaction, or
- Selecting a different network to withdraw their assets. For example when sending Ethereum, can send Ether over the Tron network if the ERC-20 network is busy
Reason 10: Invalid memo
Binance and other cryptocurrency exchanges use a "Tag" or "Memo". It is an additional feature to the address used to identify the transaction recipient in addition to the wallet address. If the user has entered the wrong memo, a "The memo is not valid” message will be shown to the user. Entering the wrong or incorrect memo can result in the loss of funds after the withdrawal procedure.
Solution: Check the memo or tag displayed beside the network address before entering and proceeding with the withdrawal.
Frequently Asked Questions
There are several reasons why a withdrawal request from Binance can be rejected. The most common causes are the account is not verified, negative wallet balance, withdrawing above or below the limit, incorrect wallet address, network congestion, scheduled maintenance, or violating Binance's policies.
Binance can suddenly suspend withdrawals due to suspicious network activity or fraudulent usage. A recent incident that resulted in a temporary rejection of withdrawals on Binance was due to transactions being stuck from low fees.
Withdrawing cryptocurrencies or fiat from the Binance account is an easy process. However, there are several reasons why the withdrawal can be rejected or terminated by the exchange. It is important to ensure that all details are correctly entered during the withdrawal process as user error is one of the most common causes of rejected withdrawals.