Popular crypto exchange, Bitstamp, has announced plans to issue a fee for inactive accounts. The latest announcement will take effect from August 1st.
Meanwhile, this news is due to the ongoing downturn in the crypto market. This decline has affected the revenue of several crypto firms.
According to the exchange, inactive users will be charged $10.20 (€10). Meanwhile, active users will not be affected by the update.
Additionally, the firm said the fee applies only to users with a balance of €200 ($203) and below. It applies especially to those who have not withdrawn, deposited, staked, or traded assets in one year.
How The Deductions Will Be Made
However, Bloomberg noted the recent charges do not apply to customers in the United States. This means they are exempted from the payment.
At the start of every month, Bitstamp will reduce the balance in defaulting accounts by €10. According to Bitstamp, it will assess the cost depending on the account’s qualifying status on the last day of every month.
Also, the exchange will make all deductions in Euros and other fiat or crypto equivalents. The firm has made it clear that the charge won’t lead to a negative amount for an account with a zero balance.
“Keeping inactive customers on the books is an expense. The company made the painful choice to institute the inactivity tax. This is for us to continue delivering quality services to all our clients,” the blog post said.
Similar to eToro, some exchange firms offer an inactivity charge structure. And as a result, additional platforms could consider using this opportunity as an income stream.
Exchanges Looking At Diversifying Their Revenue Streams
Bitstamp’s decision is coming amid the recent decline in the crypto market. Currently, the market map of the crypto market is about $950 billion.
According to CoinGecko, Bitstamp’s trading volume in the past 24 hours stands at about $164,819,778. Other exchanges also feel the effects of the dwindling volumes and erratic price movement.
Due to similar worries, Atlantic Equities recently downgraded Coinbase. However, a platform has provided options that crypto firms can use to diversify their income.
Platform Crypto India has provided a list of strategies exchanges might use to boost their volume. These strategies will allow firms to draw customers and broaden their income stream.
According to the platform, these crypto firms can offer various services. They include systematic investment plans, futures trading, loans, borrowing, and securing licenses for commodities and security trading.