If UASF Activates, GDAX Plans to Suspend Bitcoin Withdrawals

If SegWit2x doesn’t get enough support by August 1st and BIP 148 takes hold without enough of the bitcoin ecosystem support of its particular transaction chain, bitcoin could split into two competing assets. It’s a prospect that led GDAX, which is operated by startup Coinbase, to announce last night that, in the event the UASF happens, it will temporarily halt deposits and withdrawals and could take further action.

GDAX general manager Adam White wrote that the exchange could take action in the event that either one chain emerges as the stronger one or the two co-exist as separate chains, explaining:

“In either scenario we will implement safeguards to ensure the safety of our customers’ funds. For example, we will temporarily suspend the deposit and withdrawal of bitcoin on GDAX and may pause the trading of bitcoin as well. This decision will be based on our assessment of the technical risks posed by the fork, such as replay attacks and other factors that could create network instability.”

Coinbase was a signatory of an agreement struck in May between startups and miners in the industry, which led to the development of the Segwit2x proposal. A second beta version of that software is expected to be released today.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s