Users of Europe’s largest crypto exchange will now have to pay for inactivity.
According to a Bloomberg report, Europe’s largest crypto exchange and one of the world’s oldest, Bitstamp, has revealed that inactive users would be subject to a monthly fee.
“Keeping inactive accounts on the books is a cost, and in order for us to continue providing great services to all our customers, we made the hard decision to implement the inactivity fee,” the company said.
The new rule will come into effect from August, charging users with balances below €200 (approximately $204) who have not made a trade, withdrawn, deposited, or staked digital assets in the 12 months before a fee of €10 ( approximately $10.27) every month.
Consequently, the exchange encourages users to carry out any of these activities to avoid being charged.
Bitstamp’s latest rule comes as cryptocurrency trading activity, the primary income source for crypto exchanges, becomes increasingly strained as the bear market continues. According to leading US exchange Coinbase, trading volume is expected to drop even further.
As reported by The Crypto Basic, the exchange listed the popular doggy meme coin and the most searched crypto in 2021, Shiba Inu, earlier in the month. It is worth noting that this is also likely a move to bolster trading activity on the exchange due to the project’s large community following.
To cope with these challenges, competitor FTX has launched derivatives, stocks, and options trading to attract a broader user base. Notably, Bitstamp is not the only platform that charges users for inactivity. For example, stock and crypto trading platform EToro also charges an inactivity fee for users who do not log in to their accounts for 12 months.
Bitstamp is ranked as the 11th largest exchange in the world by CoinMarketCap, with a 24-hour volume of $174 million.
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Source: https://thecryptobasic.com/2022/07/06/one-of-crypto-biggest-exchange-finds-new-ways-of-revenue-applying-fees-on-inactive-users/?utm_source=rss&utm_medium=rss&utm_campaign=one-of-crypto-biggest-exchange-finds-new-ways-of-revenue-applying-fees-on-inactive-users