Luxembourg-based cryptocurrency exchange Bitstamp has scrapped plans to introduce an inactivity fee after widespread outcry from online users.
The exchange previously announced in late June that it would impose a €10 fee on inactive users on its platform with account balances of €200 or less from the beginning of August.
The inactivity fee was due to apply to Bitstamp Limited and Bitstamp Global Limited users from 1 August and Bitstamp Europe SA customers from 6 August. Per the company’s fee schedule, Bitstamp users based in the United States were exempted from the proposed fee.
The move was condemned by users on social media, with major cryptocurrency accounts among the chorus of voices against the exchange’s proposed plans.
This is very disappointing Bitstamp
-It’s really pathetic.
You are charging the lowest holders about 5% of their account balance so that they are “forced” to trade or share with you!!??
how is this even legal
— crypto bitlord (@crypto_bitlord7) 3 July 2022
https://t.co/DeBicjMIF3
Cointelegraph contacted Bitstamp to find out why the initial decision was made to implement the inaction penalty and whether the current downturn in the cryptocurrency markets played a role in the now-scraped move.
A spokesperson for the exchange cited administrative costs for maintaining dormant accounts as the primary reason for implementing the proposed inactivity fee. Bitstamp has been mulling over the idea since last year, confirming that current market conditions played no part in the move:
The spokesperson agreed that there was turmoil in the crypto markets, but noted that Bitstamp has “zero risk to any of these companies, that our financial position remains strong and healthy, and that we continue to improve our product and technology.” Continue to invest.”
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The company has since removed the initial announcement from its website and social media accounts, but the Bitstamp fee schedule page still shows details of the inactivity fee. The company also confirmed that some users had requested the closure of their accounts after the initial announcement of the proposed fee.
Users who were inactive for more than a year must buy or sell cryptocurrency on the exchange, make a fiat or cryptocurrency deposit or withdrawal or stake on Bitstamp Earn to avoid being charged fees.
Bitstamp planned to deduct €10 from an inactive user’s fiat currency balance, or an equivalent amount from their cryptocurrency holdings if their fiat balance was less than the penalty.