Luxembourg-based crypto exchange Bitstamp has revealed that it will no longer move forward with its plans to charge inactive customers about 5% of their account balance.
Bitstamp Announces Inactivity Fee
The exchange announced last week its plans to charge inactive customers outside the United States a monthly fee of 10 euros ($10.18) starting August 1. According to the statement, the policy would apply to users with less than 200 euros ($203.62) in their account who have not deposited, withdrawn, traded, or staked crypto assets on the exchange for the past 12 months.
To avoid being charged, the company advised inactive customers to trade, deposit, withdraw, or stake a minimum of 25 euros ($25.44) before next month. The exchange cited the administrative cost of keeping inactive accounts as the reason for the decision.
However, the announcement received a massive backlash from Bitstamp’s customers, with some users suggesting that the update was a strategic move for the company to survive the current bear market while ripping off customers.
This is so disappointing BitStamp
-It’s actually pathetic.
You’re charging the lowest holders approx 5% of their account balance so they are “forced” to trade or stake with you!!??
How is this even legal 🤯
— Crypto Bitlord (@crypto_bitlord7) July 3, 2022
Bitstamp Makes U-turn
After noticing users’ outrage, Bitstamp published another update, saying it will no longer charge the planned inactivity fee.
“Last week, we sent out communication that, starting August 1, we would introduce a fee for some of our inactive customers. The fee would have been charged to inactive customers with account balances of less than €200. After listening to our community’s response, we’ve 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 may have caused, some aggrieved users said they had already deleted their accounts from the exchange.
too late, I’ve deleted my account already. Luckily for us users, there’s plenty of competition in crypto space. Whoever came up with this idea in first place caused big damage to the brand
— 0xRadim (@0xRadim) July 7, 2022