GDAX Plans to Suspend Bitcoin Withdrawals If UASF Activates

Digital currency exchange platform GDAX has revealed its contingency plans in the event a controversial bitcoin scaling proposal is activated.

AccessTimeIconJul 14, 2017 at 8:40 p.m. UTC
Updated Aug 18, 2021 at 6:29 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Digital currency exchange platform GDAX has revealed its contingency plans in the event a controversial bitcoin scaling proposal is activated.

As reported earlier today by CoinDesk, BIP 148, which triggers a so-called user-activated soft fork, or UASF, to activate the Segregated Witness (SegWit) scaling solution, are pushing ahead with their plans despite the popularity of another scaling proposal, Segwit2x, which pairs the activation of SegWit with an increase to the size of the network's transaction blocks three months later.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Yet 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.

    Want to stay up to date on the latest bitcoin scaling developments? Follow the latest news and stay informed with our guides and explainers by clicking here.

    Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which acted as organizer for the SegWit2x proposal and has an ownership stake in Coinbase

    Turnstile image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.