Coinbase Delays Bitcoin Withdrawals As Split to Bitcoin Cash Draws Near
Coinbase, the world’s largest and often highest-rated Bitcoin exchange, has clearly set out its position concerning possible Bitcoin blockchain split. As August 1, the landmark in the cryptocurrency history, gets closer, speculations grow.
Coinbase explained that it will support the only version of a digital currency ignoring the new Bitcoin Cash (BCC) token created by the split. The exchange clarified in a July 27 blog post:
“Our policy is to support only one version of a digital currency. In order to determine which fork to support we look at factors such as size of the network, market value and customer demand. We make this decision carefully because safely supporting a new digital currency requires significant work for many teams”.
Coinbase users have to move funds to wallets and exchanges where they will be credited for BCC tokens.
Indeed, it did not take long to feel the result. Coinbase’s users who wanted to scoop up “free BCC tokens” leave the exchange and therefore Bitcoin’s service is degrading. The exchange warns that the outgoing BTC transactions may be delayed by up to 12+ hours due to backlog processing.
“If you wish to withdraw bitcoin (BTC) before the hard fork, we recommend you initiate your withdrawal by 10am PT on Monday July 31st due to potential network congestion”, Coinbase informs.
Earlier, Coinbase joined other Japanese exchanges informing that it will halt bitcoin transactions starting from August 1. Totally, 13 exchanges and over 5,000 retail stores and restaurants across Japan may suspend bitcoin use. Bitflyer, Japan’s largest bitcoin exchange by volume, has published official announcement: “On August 1, 2017, we may temporarily suspend bitcoin deposit and withdrawal for Coincheck exchange and payment services to protect users assets. The resume date is unspecified, but we expect several hours to several days. Also, if we decide that a Bitcoin fork will not take place on August 1, 2017, 12:00 am, the suspension of services will not happen.”