Bitstamp Scraps Proposed Inactivity Fee After Massive Criticism

The giant crypto trading platform, Bitstamp, has officially announced its decision to reconsider the €10 fees it charged inactive users. The announcement was reportedly prompted by the wide dissatisfaction with the gesture received from users globally.

Bitstamp’s Inactivity Penalty Fee Met Utter Rejection

Recently, Bitstamp stated its plans to start charging its members that are not actively contributing to the community €10. According to the plan, Bitstamp would start deducting €10 from every inactive account with €200 or less by August.

The proposed fee was planned to be deducted from inactive users’ fiat currency balance. However, if they have a lower balance, the equivalent price would be deducted from their crypto wallets.

The rule applied to all users from all Bitstamp branches all over the world except the one in the United States. Shortly after the proposal was announced, users who have been inactive for a while started engaging in one or two transactions. 

Some deposited, bought, traded, or staked coins on the firm’s platform. However, several others withdrew their funds and closed their accounts. 

However, the panic was short-lived as the proposal was scrapped. It was reportedly met with massive criticism as users expressed their dissatisfaction over it on the internet.

Reasons Behind The Inactivity Fee Proposed

While speaking with a local news source, the crypto firm was asked for the reason it decided to penalize inactive users. Also, it was asked why it decided to scrap the proposal and whether the latest outroar affected its decision?

Responding to the questions, a Bitstamp representative explained that the firm spends a lot of money to maintain inactive accounts. He said that in order to cut down the costs, the firm decided to penalize the inactive users. 

In addition, he stated that the firm had been contemplating enforcing the proposal since last year. This means that the sudden and continuous decline in price that started this year did not inspire the idea.

Bitstamp’s representative emphasized that the current crypto bloodbath did not put the firm’s branches into any serious condition. He continued that the firm commands a healthy and buoyant financial status. 

He concluded that the firm is still actively funding all sectors of its business. Following the reversal of the plan, the crypto firm has also erased the post on its social media page. 

However,  the proposed inactivity fee still shows on the page where the firm scheduled its fees. Following the proposed fee was announced, some of the users reportedly requested the firm to close their accounts.

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