Bitstamp abandons plans to introduce an ‘Inactivity Fee’
- Bitstamp had announced it will start charging an inactivity fee on inactive accounts starting August 1.
- The crypto exchange has today, however, said it will not go ahead with the inactivity fee plans.
- The decision follows a massive backlash from the community.
Following a huge backlash from the community, Bitstamp, a Luxembourg-based crypto exchange, has abandoned its previous plans of introducing an inactivity fee on inactive account.
Bitstamp had last week announced that it was introducing an inactivity fee of 10 EUR per month on inactive accounts held by non-US customers. And according to the exchange, inactive accounts were those accounts that hold less than 200 EUR and have zero transaction or other activities generating rewards in 12 months.
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Besides the inactivity fee, Bitstamp had said that the exchange would also reserve the right to terminate the inactive accounts.
In what appears to be a major turnaround, Bitstmap today announced they are scraping the idea of introducing an inactivity fee.
The announcement reads in part:
“After listening to our community’s response, we’ve changed course. There will be no inactivity fee.”
Members of the community joined hands in rebuking the crypto exchange saying that the move was “pathetic.”
One of the community member commented on Twitter saying:
“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.”
Her tweet was followed by a thread of replies with one saying:
“It’s a shame when one of cryptos leading exchanges becomes just like a predatory bank”
The community backlash caused Bitstamp to change cause and join other like crypto sevices that have had to change course after a backlash from the community.
Recently, in mid-june, Solend, a Solana-based lending and borrowing service, had to scrap its plans of taking over the protocol’s largest account due to debt.