Coinbase Allows Withdrawal Of Staked ETH After Shapella Upgrade

Key Points:

• Coinbase will allow users to withdraw their staked ETH 24 hours after the Shapella upgrade.
• The Ethereum protocol controls the staking process, so Coinbase has yet to determine how long it will take to cancel the bet.
• US exchange users may be liable for tax on any rewards earned before and after the upgrade.

Coinbase stated in a blog post that 24 hours after Shanghai-Capella (Shapella) upgraded to the Ethereum network.

The Shanghai and Capella upgrade, known as Shapella, will allow staking cancellations for the first time since ETH staking was introduced in December 2020. Although the Ethereum Merge has transformed the network from public proof From the move (PoW) to proof of stake (PoS) in September 2022, users can still withdraw their staked ETH.

The platform said that if users want to cancel their ETH deposit, it can be done on Coinbase as soon as the upgrade is complete. However, no-staking requests will be subject to a waiting period determined by the Ethereum protocol.

“Customers may need to be patient: we anticipate the Ethereum protocol to take weeks to months to process no-staking requests immediately after the upgrade.”

Announcement shared

No deposit requests will be open to all Coinbase customers at once and will be forwarded to the Ethereum protocol and queued based on when they are received.

Since the Shapella Upgrade allows staking cancellation and payment of staking rewards, customers will generally be liable for taxes owed on any rewards earned before the upgrade and after that.

For U.S. Coinbase customers holding collateralized ETH (ETH2) or cbETH, Coinbase will issue any required 1099-MISCs, including taxable activities associated with such assets, in accordance with general tax guidelines.

This year has been a year of users eagerly waiting for Ethereum upgrades, anticipating a high demand for staking on the network right after the upgrade, as this is the first time stakingers can unlock coins. as of December 2020.

At the same time, Lido Finance – the liquid staking solution that is dominating the entire array, decided to postpone the unstake schedule to mid-May. The reason was given to have more time to check on-chain to ensure safety for users.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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