Luxembourg-based cryptocurrency exchange Bitstamp has scrapped intends to implement an inactivity fee after prevalent outcries from users online.
The exchange had formerly announced in the finish of June it would enforce a €10 fee on inactive users on its platform with account balances worth €200 or fewer right from the start of August.
The inactivity fee was because of be relevant to users of Bitstamp Limited and Bitstamp Global Limited from 1 August as well as for customers of Bitstamp Europe S.A. from 6 August. Bitstamp users located in the U . s . States were exempt in the suggested fee, based on the company’s fee schedule.
The move was met with condemnation from users on social networking, with prominent cryptocurrency accounts one of the chorus of voices hitting out from the exchange’s suggested plans.
This really is so disappointing BitStamp
-It’s really pathetic.
You’re charging the cheapest holders approximately 5% of the balance so that they are “forced” to trade or stake along with you!!??
How’s this even legal
https://t.co/DeBicjMIF3— Crypto Bitlord (@crypto_bitlord7) This summer 3, 2022
Cointelegraph arrived at to Bitstamp to determine why the first decision was come to implement the inactivity penalty and if the current downturn across cryptocurrency markets performed a job within the now-scrapped move.
A spokesperson in the exchange reported administrative costs suffered by maintaining inactive accounts as the main reason for applying the suggested inactivity fee. Bitstamp have been thinking about the concept since this past year while reaffirming that market conditions didn’t lead to the move:
The spokesperson agreed there was turmoil over the crypto markets but noted that Bitstamp has “zero contact with these companies, our budget remains healthy and strong, and now we are ongoing to purchase our product and technology.”
Related: Hardware crypto wallet sales increase as centralized exchanges scramble
The organization has since removed the first announcement from the website and social networking accounts however the Bitstamp fee schedule page still reflects the facts from the inactivity fee. The company also confirmed that quite a few users had requested to shut their accounts following the initial announcement from the suggested fee.
Users that were inactive for over a year might have needed to purchase or sell cryptocurrency around the exchange, create a fiat or cryptocurrency deposit or withdrawal or stake on Bitstamp Earn to prevent incurring the charge.
Bitstamp decided to subtract €10 from your inactive user’s fiat currency balance, or even the equivalent amount using their cryptocurrency holdings if their fiat balance was less than the penalty.
