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Cryptocurrency exchange Bitstamp plans to charge a monthly inactivity fee for certain users to cover costs as the cryptocurrency market drags on trading volumes.
Bitstamp Plans to Charge Inactive Users
According to a Bloomberg report, Europe's largest crypto exchange and one of the world's oldest, Bitstamp, is planning to charge a monthly fee for certain inactive users.
"Keeping inactive accounts on the books is a cost, and in order for us to continue providing great services to all our customers, we made the hard decision to implement the inactivity fee," the company clarified.
A minimum of $10.27 per month will be charged for those accounts that haven't traded, deposited, withdrawn, or staked assets for a year with a total balance of less than 200 euros, starting August 1. Users in the U.S., however, aren't subject to the charges.
"On the August 1, 2022, If you have traded, deposited, withdrawn, or staked assets with Bitstamp Earn, in the preceding 12 months, you're not affected by the charge at all. It doesn't matter if your total balance is above or below €200, you're an active customer," it added.
Users can buy or sell crypto, make a deposit or withdrawal, or enroll in staking services to avoid the charge.
Crypto Exchanges Looking for Revenue Sources
Most exchanges make money from fees on trading volumes, which tend to fall during prolonged market downturns. The companies, therefore, are looking to expand their revenue base to diversify their business. Coinbase, for instance, has been testing a new subscription service dubbed Coinbase One, while other exchanges like Kraken have expanded into staking. FTX US recently expanded into equities trading to diversify its revenue sources. EToro, which offers both stocks and crypto trading, also has an inactivity fee, which applies to users with no login activity for a year.