South Korean cryptocurrency exchange Bithumb announced a crucial operational change on January 23, 2025, that will temporarily affect Tezos (XTZ) traders worldwide. The platform will suspend all XTZ deposits and withdrawals starting precisely at 9:00 a.m. UTC on January 24 to facilitate a significant network upgrade. This strategic pause represents standard protocol for blockchain maintenance, yet it carries important implications for the global cryptocurrency ecosystem.
Understanding Bithumb’s XTZ Suspension Timeline
Bithumb’s announcement follows established industry protocols for handling blockchain upgrades. The suspension begins at 9:00 a.m. UTC on January 24, 2025. Trading of XTZ against other cryptocurrencies will continue uninterrupted during this period. However, users cannot move XTZ tokens to or from external wallets. The exchange typically resumes services after confirming network stability post-upgrade. Historical data shows similar suspensions usually last between 2-8 hours, though Bithumb has not specified an exact completion time.
South Korea’s Financial Services Commission requires exchanges to provide advance notice for such operational changes. Consequently, Bithumb published their announcement with approximately 24 hours’ notice. This timeframe allows users to complete pending transactions before the suspension window. Major global exchanges often coordinate upgrade schedules to minimize market disruption. For instance, Binance and Coinbase implemented similar XTZ maintenance periods earlier this month.
Tezos Network Upgrade: Technical Background
The suspension directly supports Tezos’ “Mumbai” protocol upgrade, the fourteenth major update since the network’s 2018 launch. Tezos employs a unique self-amending blockchain architecture. This innovative design enables seamless protocol upgrades without hard forks. Network validators, called bakers, must adopt new protocol software to continue operations. Exchanges temporarily suspend services to ensure transaction consistency during this transition period.
Key improvements in the Mumbai upgrade include:
- Reduced block times from 30 to 15 seconds
- Enhanced smart contract capabilities through new Michelson opcodes
- Improved consensus mechanism for better network efficiency
- Lower transaction fees through optimized gas costs
These technical enhancements position Tezos competitively against Ethereum and other smart contract platforms. The reduced block time particularly addresses previous scalability concerns. Network upgrades typically increase blockchain activity post-implementation. Historical data from previous Tezos upgrades shows average transaction volume increases of 15-25% in subsequent weeks.
Exchange Protocol During Blockchain Upgrades
Major cryptocurrency exchanges follow established security protocols during network upgrades. Bithumb’s approach mirrors industry standards practiced by global platforms. Exchanges typically complete these key steps:
| Phase | Actions | Duration |
|---|---|---|
| Pre-announcement | Notify users, pause new deposits | 24-48 hours |
| Suspension | Halt all external transfers | 2-8 hours |
| Network monitoring | Test upgraded blockchain | 1-3 hours |
| Resumption | Gradual restoration of services | 30-60 minutes |
This structured approach minimizes user disruption while ensuring fund security. Bithumb has successfully managed over fifty similar blockchain upgrades since 2021. Their proven track record provides assurance to concerned investors. The exchange maintains comprehensive insurance coverage during maintenance periods. Additionally, cold wallet storage protects the majority of user assets.
Market Impact and Investor Considerations
Tezos (XTZ) market activity typically shows specific patterns around upgrade events. Historical analysis reveals temporary price stability during suspension periods. Trading volume often shifts to other exchanges without simultaneous maintenance. However, Bithumb represents approximately 8% of global XTZ trading volume. This percentage suggests minimal overall market impact from their temporary suspension.
Investors should consider several practical implications:
- Complete pending XTZ transfers before 9:00 a.m. UTC January 24
- Monitor official Bithumb channels for resumption announcements
- Consider using alternative exchanges for urgent XTZ transactions
- Verify successful transactions after service restoration
The South Korean won trading pair for XTZ represents significant regional liquidity. Bithumb processed approximately $42 million in XTZ transactions during the previous month. This substantial volume underscores the importance of their operational decisions. Regional traders often utilize multiple exchanges to mitigate service interruptions. Consequently, experienced investors typically maintain accounts on 2-3 different platforms.
Regulatory Context in South Korea
South Korea maintains rigorous cryptocurrency regulations through the Financial Services Commission. Exchanges must comply with strict operational guidelines. These include mandatory advance notice for service changes exceeding two hours. Bithumb’s announcement timing and format demonstrate regulatory compliance. The exchange also participates in the Travel Rule compliance system for transactions over 1 million won.
Korean exchanges implemented enhanced security measures following 2022 regulatory updates. These improvements include:
- Real-name verification for all accounts
- Separate cold wallet storage for 95%+ of assets
- Mandatory insurance coverage
- Regular third-party security audits
These measures provide additional protection during maintenance events. Bithumb’s transparent communication reflects their commitment to regulatory standards. The exchange maintains one of the industry’s highest security ratings among Korean platforms.
Comparative Analysis: Global Exchange Practices
Major global cryptocurrency exchanges employ similar protocols for blockchain upgrades. However, implementation details vary significantly across regions. For example, European exchanges typically provide longer advance notice periods. Meanwhile, Asian platforms often coordinate upgrade schedules regionally. This coordination minimizes simultaneous service interruptions across multiple exchanges.
Recent XTZ upgrade handling across exchanges:
- Coinbase: 4-hour suspension with 36-hour advance notice
- Binance: 3-hour suspension with 24-hour advance notice
- Kraken: 6-hour suspension with 48-hour advance notice
- Bithumb: Undisclosed duration with 24-hour advance notice
These variations reflect different risk management approaches and regional requirements. Bithumb’s protocol aligns closely with Asian exchange standards. The platform’s extensive experience with previous Tezos upgrades suggests efficient execution. Their technical team has successfully managed thirteen prior XTZ protocol transitions since 2019.
Conclusion
Bithumb’s temporary XTZ suspension represents standard industry practice for blockchain network upgrades. The January 24, 2025 maintenance window facilitates Tezos’ Mumbai protocol implementation. This upgrade brings significant technical improvements to the network. Investors should complete pending transactions before the 9:00 a.m. UTC deadline. The suspension demonstrates Bithumb’s commitment to security and regulatory compliance. Furthermore, it highlights the evolving infrastructure supporting cryptocurrency ecosystems globally. This Bithumb XTZ suspension follows established protocols that prioritize user asset protection while enabling blockchain progress.
FAQs
Q1: How long will Bithumb’s XTZ suspension last?
Bithumb has not specified an exact duration. Historical data suggests similar suspensions typically last 2-8 hours. The exchange will announce resumption through official channels.
Q2: Can I still trade XTZ on Bithumb during the suspension?
Yes, XTZ trading against other cryptocurrencies continues uninterrupted. Only deposits and withdrawals to external wallets are temporarily suspended.
Q3: What happens to XTZ deposits sent during the suspension?
Deposits sent during the suspension period may experience significant delays. These transactions will process once services resume. Always verify completion before sending additional funds.
Q4: Are my XTZ tokens safe on Bithumb during the upgrade?
Yes, Bithumb employs comprehensive security measures including cold storage and insurance coverage. These protections remain active throughout the maintenance period.
Q5: Will other exchanges also suspend XTZ services?
Some exchanges may conduct simultaneous maintenance, but not all. Check individual exchange announcements for specific XTZ suspension schedules during the Tezos network upgrade.
Related News
- Changpeng Zhao Unveils Crucial Crypto Trends: Asset Tokenization, Payments, and AI Agents Set to Dominate 2025
- Bitcoin Difficulty Plummets to Critical September 2025 Lows as Miner Profitability Faces Unprecedented Squeeze
- DDC Enterprise Bitcoin Strategy Deepens with Strategic 200 BTC Purchase, Signaling Corporate Confidence
