Crypto exchange backtracks on plan to charge inactivity fee

Crypto exchange Bitstamp cancelled a planned “inactivity fee,” reversing course just five days after announcing the charges.

The Luxembourg-based company scuttled a plan to start charging non-US users 10 euros ($10.18) a month on accounts that haven’t traded, deposited, withdrawn or staked assets for a year with a total balance of less than 200 euros, a third-party spokesperson confirmed in an email to Bloomberg on Wednesday.

“We have taken everyone’s concerns onboard and have decided to cancel the Inactivity Fee,” JB Graftieauz, Bitstamp’s chief executive, said in a statement citing customer feedback.

Trading volume dipped below $60 million in the days after the announcement coinciding with a holiday weekend in the US, the exchange’s volume has since rebounded to $170 million in the last 24 hours, according to Coingecko data.

Bitstamp emphasized that it has no exposure to any companies that are currently “under stress.” The company also said that it holds its customers’ fiat and crypto separately from its corporate assets.

Coinbase Global Inc. and other exchanges have seen investors pulling out their tokens as deposits drop, while smaller players, like Coinflex and Vauld, have paused withdrawals.

In response to uncertainty in the market and rising interest rates, risk-averse investors have transferred their holdings to off-line wallets.

Now read: University recovers Bitcoin ransom — with a huge profit

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Crypto exchange backtracks on plan to charge inactivity fee