Coinbase to Cease Bitcoin SV Support by Jan 2024, Urges Holders to Withdraw Tokens
Leading crypto exchange and wallet Coinbase on Tuesday, unveiled plans to completely cease support for Bitcoin SV (BSV) token. The platform had delisted the token in 2021.
Coinbase confirmed the changes in a note sent to users stressing that the platform “will no longer support BSV,” effective January 9, 2024.
Coinbase finally saying goodbye to BSV 👋 pic.twitter.com/o1FxAqgy6J
— Alex Gladstein 🌋 ⚡ (@gladstein) November 6, 2023
“Users are able to withdraw BSV funds until support for this asset is deprecated on January 9, 2024 at around 12 pm ET.”
The US-based trading platform delisted Bitcoin’s (BTC) hard fork BSV, also known as Satoshi’s Vision, in 2021. The blockchain behind BSV suffered a 51% attack, making the network unstable. Since then, Coinbase users have been unable to buy/sell the coin, however, have been holding it in their wallets.
A group of individuals led by Craig Wright, who claims to be Satoshi Nakamoto, created BSV in November 2018. The token is a result of a software upgrade to the Bitcoin Cash (BCH) protocol that resulted in a hard fork.
Withdraw BSV or Face Liquidation
Following the removal of the BSV token, Coinbase urged users to withdraw their BSV holdings before the deadline. Failure to do so would result in the liquidation of any remaining BSV, it warned.
Following the liquidation, BSV will be converted to the then-equivalent market value of another supported crypto asset and credited back to the user’s accounts, the note read. This would involve transaction costs depending on market fluctuations.
“If you do not withdraw your BSV by January 9, 2024, you may incur tax liability or have other unanticipated tax consequences as a result of the liquidation or conversion. You are solely responsible for any taxes associated with transactions on Coinbase.”
Furthermore, BSV trading and transactions are disabled and attempting to send BSV to Coinbase may result in loss, it said.
Prominent crypto exchanges such as Binance, ShapeShift and Kraken, have delisted BSV several years ago, citing the token’s red flags.