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Bitstamp Plans to Introduce an Inactivity Fee to Encourage Trading

Luxembourg-based crypto exchange Bitstamp has modified its operational strategy to boost trading volumes. The company announced plans to introduce an inactivity fee starting August 1. Specifically, the exchange intends to charge select inactive accounts €10 ($10.27) per month.

According to the announcement, the inactivity fee will not apply to all accounts. Bitstamp specified that it targets users that have not deposited, withdrawn, or staked assets for more than a year.

Moreover, the exchange said this change would only affect inactive accounts holding less than €200 ($204.56). Nothing will happen to accounts without funds because the inactivity fee will not result in a negative balance.

Active users will remain unaffected despite their account balance. Inactive users holding more than €200 ($204.56) in their accounts are also safe. Bitstamp added that US users would not be subject to the inactivity fee.

The exchange further noted that affected users could avoid the inactivity fee by trading, depositing, withdrawing, or staking assets in Bitstamp Earn. However, Bitstamp said most users are not subject to the fee.

Maintaining Inactive Accounts is Costly

Explaining introducing the fee is necessary, Bitstamp said:

Nobody loves fees (we don’t either!) but 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 seems to have borrowed the idea for an inactivity fee from rival eToro. The latter charges a €10 ($10.27) inactivity fee per month for accounts that have been inactive for over a year. However, unlike Bitstamp, which requires users to trade, withdraw, deposit, or stake assets, eToro only needs users to sign in to avoid the fee.

This news comes as the prolonged bear market continues discouraging most crypto adopters from trading. As a result, exchanges that solely depend on high trading volumes have found themselves in a fix.

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To bypass this difficulty, crypto exchanges are engineering ways to remain profitable. Among the options that exchanges have embraced include integrating non-fungible token (NFT) and equity trading functionalities.

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