Bitstamp Introduces ‘Inactivity Fee’ From Aug. 1; The fee will not apply to users in the U.S. or those with an account balance of more than €200.
Image Source : Bitstamp
Crypto exchange Bitstamp has announced that it will begin charging a €10 per month inactivity fee starting August 1.
The fee will not apply to users in the U.S. or those with an account balance of more than €200. Bitstamp said most customers are not affected by the new “inactivity fee.”
The exchange said affected users could avoid the fee by exchanging crypto, making withdrawals or deposits, or staking Bitstamp earnings. The inactivity fee applies if the user has not performed any of these activities in the past 12 months.
Bitstamp said the move will help reduce expenses. It added:
Keeping inactive accounts on the books is a cost and in order for us to continue to provide excellent services to all our customers, we have made the difficult decision to implement an inactivity fee.
Meanwhile, Bitstamp isn’t the only exchange with inactivity fees. Crypto and stock trading platform eToro also has one.
However, eToro’s inactivity fee only applies to users who have not logged in for 12 months. Its website states that users can stop the inactivity fee once they log in.
The crypto community reacts
The crypto community has reacted negatively to Bitstamp’s new charges. According to DeFi Shark, Bitstamp’s new fees will push its users to other exchanges. Another user said the crypto exchanges are copying everything they have criticized in the banking industry. Some believe that the new fees suggest that the exchange may have solvency issues.
Crypto exchanges get creative to diversify revenue
With the downturn in the crypto market, there has been a decline in crypto trading activities which is the main source of revenue for centralized exchanges.
Several exchanges like Crypto.com, Bullish, Gemini and others have adopted cost-cutting measures such as laying off employees.
Others, such as FTX, have ventured into new areas such as equity trading to diversify their revenues. Kraken has expanded its staking services, while Coinbase also plans to launch a new subscription service called Coinbase One.