Coinbase Officially Pulls Support for Bitcoin SV (BSV)

American cryptocurrency exchange Coinbase will no longer support Bitcoin SV (BSV), per a recent post by the firm on X.

BSV No Longer Hosted on Coinbase

Coinbase has announced that it has deprecated support for BSV and effectively immediately, the coin will no longer be available on its trading platform. In effect, Coinbase customers can no longer have access to their BSV holdings and they are also not allowed to withdraw or deposit more of the coin in their wallets. 

For those who previously held BSV on Coinbase and did not move the token even after receiving a warning from the crypto exchange, the assets would have been liquidated and converted to the market equivalent of another coin supported on Coinbase. The exact value of the new crypto will be credited to the user’s account, minus transaction costs. 

We have deprecated support for Bitcoin SV (BSV). We appreciate your patience and cooperation. https://t.co/35AhSAerJt

— Coinbase Assets 🛡️📞 (@CoinbaseAssets) February 3, 2024

Notably, it had been previously declared that the Coinbase and BSV business relationship would be terminated on January 9, 24. Back in November, the crypto exchange notified its users to withdraw their BSV or stand to have it liquidated and converted to another digital asset. Many Coinbase customers who hold BSV were concerned about the additional taxation charges that may follow the conversion.

Coinbase had delisted the BSV token as far back as 2021 after Craig Wright, one of the self-acclaimed inventors of Bitcoin, lost the BTC copyright. At the time, the token had suffered multiple attacks on its protocol, hence, Coinbase was not the only exchange that took a position against the coin. Leading digital asset service provider Binance equally delisted Bitcoin SV at the time.

Delisting Trend in the Crypto Industry

The decision to delist non-performing tokens is fast becoming a crypto industry trend, especially when such assets become overwhelmed by certain challenges. Ripple-associated coin XRP suffered a similar fate more than three years ago and in its case, it was due to regulatory hurdles against the coin. 

The United States Securities and Exchange Commission (SEC) brought an enforcement action against Ripple for offering XRP as an investment contract. In the regulator’s opinion, XRP is an unregistered securities. The news had a ripple effect on the market outlook of the coin as many exchanges including Coinbase and Binance decided to delist the token. 

The delisting of BSV may push Coinbase users to other platforms where the coin is supported, therefore, impacting negatively on its user base. In a shocking twist, BSV is up 2.7% at the time of writing to $72.74 despite the delisting news, a proof that the new is not impacting its community negatively.