Regulatory Restrictions Direct withdrawals from Binance to…
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Regulatory Restrictions
Direct withdrawals from Binance to the Phoenix wallet via the Lightning Network may fail due to regulatory constraints and invoice compatibility issues. Since April 2024, Phoenix has ceased serving US users after the SEC classified Lightning providers as payment processors requiring a license. This often results in Binance rejecting Lightning invoices issued by Phoenix, which are flagged as "unreachable."
Technical Billing Issues
In addition to geographical restrictions, errors related to invoice validity can block withdrawals. Binance may reject some Phoenix invoices due to non-standard functionality bits or incorrect formats. Users then encounter messages such as "Invalid invoice number" or "Invoice is unreachable," indicating that the request cannot be processed correctly.
Workarounds and Tracking
A temporary workaround is to first transfer funds to an intermediary wallet such as Wallet of Satoshi (WoS), and then send them from WoS to Phoenix. This bypasses the direct routing issue. If the transaction remains in "Processing" status on Binance, it is advisable to check the TxID on a blockchain explorer to confirm network confirmations, keeping in mind that the funds may not arrive if the invoice is invalid.
Direct withdrawals from Binance to the Phoenix wallet via the Lightning Network may fail due to regulatory constraints and invoice compatibility issues. Since April 2024, Phoenix has ceased serving US users after the SEC classified Lightning providers as payment processors requiring a license. This often results in Binance rejecting Lightning invoices issued by Phoenix, which are flagged as "unreachable."
Technical Billing Issues
In addition to geographical restrictions, errors related to invoice validity can block withdrawals. Binance may reject some Phoenix invoices due to non-standard functionality bits or incorrect formats. Users then encounter messages such as "Invalid invoice number" or "Invoice is unreachable," indicating that the request cannot be processed correctly.
Workarounds and Tracking
A temporary workaround is to first transfer funds to an intermediary wallet such as Wallet of Satoshi (WoS), and then send them from WoS to Phoenix. This bypasses the direct routing issue. If the transaction remains in "Processing" status on Binance, it is advisable to check the TxID on a blockchain explorer to confirm network confirmations, keeping in mind that the funds may not arrive if the invoice is invalid.
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