Sun. Jul 3rd, 2022
Cryptocurrency broker starts charging 'monthly fee' and customers revolt

In the latest change to its terms of service, Bitstamp, one of the oldest Bitcoin and cryptocurrency exchanges in the world, has added a new fee to its customers. Functioning as a kind of monthly fee, some users criticized the company’s behavior. Called “inactivity fee”, the charge will have a monthly fee of 10 euros, equivalent to BRL 52, to all customers who have a balance of less than 200 euros (BRL 1,040) and have not used the platform in the last twelve months. In other words, a balance of 200 euros will disappear in less than two years. Unsurprisingly, some community members were outraged by Bitstamp’s move, expressing similar sentiments they had after Coinbase announced that if it went bankrupt, its customers’ cryptocurrencies could be taken.

Bitstamp starts charging inactivity fee

Although it is not recommended to keep a balance on exchanges, many investors end up opting for convenience over security and do not keep their cryptocurrencies in their own custody. Now, in addition to the risks of hacking and bankruptcy, users of one of the most respected Bitcoin exchanges, Bitstamp, have to worry about another detail: the inactivity rate. According to Bitstamp’s own document, published this Monday (6), its customers who have a balance of less than 200 euros (BRL 1,040) and who have not carried out actions on the platform in the last 12 months will need to pay a monthly fee of 10 euros (BRL 10). 52).
“We reserve the right to charge an inactivity fee if your account balance is less than EUR 200 (the balance is valued in full in EUR) and no transactions (i.e. deposit, withdrawal or trade) initiated by you or other activities that generate rewards (e.g. staking reward) have taken place in the last 12 months (in fiat currency, virtual assets or digital assets).” Points to Bitstamp’s new term of service.
Idle Fee, introduced by Bistamp, one of the oldest and most respected Bitcoin exchanges on the market. Unsurprisingly, the community reacted negatively to the announcement, stating that it was a dumb move on their part. While some claim they will be closing their accounts, another compares the exchange to Netflix.

“That means Bitstamp will become the next Netflix. A subscription-based service.”

Anyone who doesn’t agree can close the account.

Still in the document, the brokerage states that such a fee will not result in negative balances. However, it is worth noting that such monthly fees can reduce a balance from 200 euros to zero in just 20 months, that is, less than two years. Without further ado, Bitstamp also states that customers who do not agree with the updates can terminate their accounts. It seems that it has no interest in customers who use the platform infrequently.

“If you do not agree with these changes, you have the right to terminate your Bitstamp account at any time free of charge.”

Finally, this is yet another reminder that an exchange is not a wallet. So always keep your bitcoins and other cryptocurrencies in your possession if you don’t want to go through unpleasant situations.