Woofun AI reports that South Korean exchange Upbit has suspended all Tezos (XTZ) deposits and withdrawals effective 11:00 a.m. UTC on June 29 to accommodate a scheduled network upgrade. This operational pause covers every incoming and outgoing XTZ transaction until the blockchain stabilizes following the protocol change. The exchange has not provided a specific resumption time, stating instead that services will restart only after the upgrade concludes and system stability is confirmed.

The deeper driver behind this suspension is the necessity to prevent transaction processing errors during periods of protocol volatility. When underlying blockchain rules shift, transaction formats, block validation logic, or address structures may alter, creating risks for funds in transit. By halting services, Upbit minimizes the probability of assets becoming lost or stuck in the network during these critical technical adjustments.

Notably, users holding XTZ within Upbit wallets require no immediate action as the exchange manages the technical transition internally.

However, traders must finalize any pending deposits or withdrawals before the June 29 cutoff to avoid failed requests or delayed credits once the suspension takes effect. Incoming transactions initiated after the start time may not be credited to user accounts until the upgrade is fully finalized.

Per Woofun AI, this measure aligns with standard industry practices where exchanges routinely freeze asset flows during major blockchain upgrades to maintain accurate ledger records. Tezos distinguishes itself through an on-chain governance mechanism that facilitates upgrades via formal proposals and voting, avoiding the disruptive hard forks common in other networks. Previous amendments to the Tezos protocol have successfully delivered enhanced smart contract capabilities, improved scalability, and reduced transaction costs.

While Upbit has not disclosed the specific features of the current upgrade, the event reflects the chain's history of regular protocol amendments designed to enhance performance and developer tooling. This temporary suspension underscores the critical need for coordinated exchange responses to blockchain protocol changes to guarantee asset security and service continuity. Such operational pauses remain a necessary safeguard whenever a network undergoes significant structural evolution.