Luxembourg-based crypto exchange Bitstamp has revealed that it will no longer proceed with its plan to charge inactive customers about 5% of their account balances.
Bitstamp announces inactivity fee
The exchange last week announced plans to charge inactive customers outside the United States a monthly fee of 10 euros ($10.18) from August 1. According to the statement, this policy will apply to users who have less than 200 euros ($203.62) in their accounts. Those who have not deposited, withdrawn, traded or bet crypto assets on the Exchange for the past 12 months.
To avoid fees, the company advises inactive clients to trade, deposit, withdraw or bet at least 25 euros ($25.44) before the next month. The exchange cited administrative costs of keeping dormant accounts as the reason for the decision.
However, the announcement received an overwhelming response from Bitstamp customers, with some users suggesting that the update was a strategic move for the company to avoid the current bear market, while robbing customers.
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
https://t.co/DeBicjMIF3— crypto bitlord (@crypto_bitlord7) 3 July 2022
Bitstamp Makes a U-Turn
After noticing users’ outrage, Bitstamp published another update, stating that it would no longer charge the planned inactivity fee.
“Last week, we sent communication that, starting August 1, we will introduce a fee for some of our inactive customers. Inactive customers with account balances of less than €200 will be charged. After hearing feedback from our community, We have changed course. There will be no inactivity fee,” the exchange said in a company blog.
Although Bitstamp removed the initial announcement and apologized for any inconvenience it caused, some aggrieved users said they had already deleted their accounts from the exchange.
It’s too late, I already deleted my account. Luckily for us users, there is a lot of competition in the crypto space. Whoever first came up with this idea did a great deal of damage to the brand
— 0xRadim (@0xRadim) 7 July 2022
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