BitMEX enables lower withdrawal fees with native SegWit support

BitMEX, one of the largest crypto derivatives exchanges in the world, announced that it has added support for Bitcoin Bech32 addresses.

According to the company's announcement, users will now be able to withdraw to their SegWit addresses with lower fees and contribute to the reduction of block weight usage on the platform.

BitMEX enables withdrawals to all three types of Bitcoin addresses.

Crypto derivatives exchange BitMEX has expanded its service and currently offers its users the ability to withdraw funds to all three types of Bitcoin addresses.

"The key advantage of Bech32 addresses is that transaction fees can be saved when spending bitcoin, which was already sent to a Bech32 address."

In a blog post, the company explained that the absence of overhead when sending a transaction will reduce the fees in every transaction the user makes.

The third and newest Bitcoin address format, Bech32, is also referred to as the native SegWit format and takes full advantage over the improvements brought on by the soft-fork.

A solution to Bitcoin's scalability problem implemented in 2017, SegWit splits a transaction into two segments-appending signature, or "Witness" data from the original transaction.

Info, SegWit transactions represent 56 percent of all the activity on the Bitcoin network.

Despite the major impact that its implementation has had on transaction fees, BitMEX was one of the last major crypto exchanges that have integrated it.