Crypto Exchange Finds a New Way to Make Money: “Inactivity Fee”

Dave Harvard
Reading time: 2 minutes

  • Bitstamp will charge a monthly fee to some users who don’t use the site much.
  • As the market goes down, trading volume in the crypto sector decreases.

Bitstamp plans to charge some users a monthly “inactivity fee”. One way to recover from the market crash which makes it harder for people to exchange.

Starting August 1, Bitstamp will charge 10 euros ($10.27) per month to inactive accounts. Accounts that haven’t traded, deposited, withdrawn, or staked assets in a year and have a balance of fewer than 200 euros. Users in the US don’t have to pay the fees.

“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,” Bitstamp said in the blog. Users can avoid the fee by buying or selling crypto, making a deposit or withdrawal, or signing up for staking services. This is like a reward for holding into specific cryptocurrencies.

Crypto exchanges have been looking for ways to get less of their income from trading. It tends to drop when the market goes down for a long time. The biggest cryptocurrency exchange in the U.S., Coinbase Global Inc., has warned that trading volume will be lower in the second quarter than in the first. Sam Bankman-Fried is one of the people who started the cryptocurrency exchange FTX US. FTX US recently began trading stocks. That is a way to bring in more retail investors and generate more revenue from different sources.

EToro lets you trade stocks and cryptocurrencies. Its website says that users who haven’t logged in for a year will have to pay an “inactivity fee.” It said that users could stop the charges as soon as they signed in.

Bitstamp, which started in 2011 and is based in Luxembourg, is one of the oldest active cryptocurrency exchanges. Coingecko says that more than $173 million in shares were traded in the last 24 hours.

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