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Binance Suspends, Resumes Client Withdraws as Crypto Markets Soar

Binance briefly suspends client withdrawals amid an ongoing surge in trading interest that underscores the risks inherent global in cryptocurrency markets.

Binance, the world's largest cryptocurrency exchange by volume, temporarily suspended withdraws from its platform Monday amid what it called "large volume increases" for Ethereum and other digital tokens.

The suspension was lifted shortly after the 7:13 am Eastern time suspension, but nonetheless underscore some of the risks inherent from the surge in interest for cryptocurrencies that remain largely unregulated. 

Last week Gary Gensler, the newly-appointed Chairman of the Securities and Exchange Commission, told CNBC that crypto tokens were "indeed securities" and as such would likely fall under the regulator's broader authority.

"I think that we need greater investor protection there and we don’t have a federal regime overseeing the crypto exchanges, so if an investor wants to trade on that Bitcoin, understanding it’s highly volatile, highly speculative, but if they want to trade on that, that we have in place some investor protection and that’s what I was saying I think is a gap in our system right now," he said.

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Ether, the digital token used for transactions on the Ethereum blockchain, passed the $4,000 price mark Monday, notching its third consecutive daily all-time high amid a surge in cryptocurrency trading that has tested platforms and networks in markets around the world.

Dogecoin, meanwhile, lost more than a third of its value over the weekend following comments from Elon Musk, who called the digital token a 'hustle' during his much-anticipated appearance on Saturday Night Live. 

The Tesla  (TSLA)  founder and CEO later Tweeted that his commercial rocket company, SpaceX, would accept Dogecoins for payment in future, giving the controversial crypto a lift in early Monday trading.

Ether token prices were marked 2.5% higher on the CoinDesk exchange Monday and changing hands at $4,028.76 each, an all-time high that puts the cryptocurrency's year-to-date gain at around 750%. Bitcoin prices, meanwhile, were marked 1% higher at $57,860.00 each while Dogecoin was down 13.5% at around 51 cents.  

Coinbase Global  (COIN)  shares, meanwhile, were marked 1.1% higher at $266.55 each, still well shy of the $429.54 high the shares reached on their Nasdaq trading debut on April 14.