Taking on the safety measure and deal with Bitcoin protocol split, Bitcoin exchanges decided to stop all the deposit and withdrawal transaction services.
Due to the activation of the UASF, all the operators and services will be getting affected. To avoid this situation and major loss of both the exchanges and Bitcoin users, the decision of banning the services is held.
The chain split will be directly affecting the Bitcoin price. There is the chance Bitcoin price may fall drastically once the forking gets started. It is assumed that Bitcoin price may fall approx. $500 or below.
The official announcement has been made by the Japan Cryptocurrency Business Association to suspend the exchange services for users. 13 Bitcoin exchanges members declared the temporary ban on Bitcoin deposits and withdrawals service on 1 August.
All the exchanges supporting this decision stated:
“We decided to temporarily stop accepting bitcoin deposits and withdrawals at each exchange. We will stop only the services related to depositing and withdrawing bitcoins, but we will provide our regular services for other virtual currencies and legal currencies.”
Exchanges will operate accordingly to the fork activated or not. If the chain splits all the buy and sell request for Bitcoin will be freeze for 2-3 days. We may be unavailable for updating the technology and enhancing the security of exchange interface according to the fork activated.
These all may take time but it will ensure the safety of bitcoins to customers. The ban will be temporary until the settlement of dust.