Bitstamp Has Canceled Plans To Charge Inactive Users

Bitstamp, a Luxembourg-based cryptocurrency exchange, has abandoned plans to impose a monthly fee to inactive users with low holdings following a massive backlash from the community.

Bitstamp said last week that, beginning August 1, non-US customers with balances of less than EUR 200 will be charged a 10-euro monthly fee if they had not been active in the previous 12 months.

The inactivity fee sparked outrage among members of the community.

One Twitter user said:

“This is so disappointing BitStamp. It’s actually pathetic. You’re charging the lowest holders approx 5% of their account balance so they are “forced” to trade or stake with you!!?? How is this even legal,”

The exchange said today that it is abandoning the plan, saying:

“After listening to our community’s response, we’ve changed course. There will be no inactivity fee.” 

Nonetheless, this is not the first time a crypto company has had to shift course due to community opposition.

In mid-June, Solana (SOL)-based borrowing and lending firm Solend was forced to abandon plans to take control the protocol’s largest account after the crypto community chastised the concept as contradicting the “decentralized” character of crypto.

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Patrick

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