Bitfinex — a popular HongKong-based exchange has recently made an important announcement regarding its fees structure. The exchange made it known that a new fee structure has been fixed for external wire requests. According to the exchange, this is its way of cutting down on the size and frequency of withdrawals done using this method.
3 Percent Will be Charged
The exchange made it known that effective this week, after performing fiat withdrawals more than two times within 30 days, it users will be charged 3 percent on every fiat withdrawal done. The report also made it known that once a user’s Fiat withdrawal within a period of 30 days surpasses $1 million, the exchange will charge 3 percent on every withdrawal done after that.
The exchange also made sure to notify the public that this new fee structure is only applicable to Fiats withdrawals and not to crypto-based withdrawals. Even at this, the exchange has noted that this change in fee structure is going to affect about 99% of its users. So in order to avoid getting charged this fee, Bitfinex expects its users to start considering other available withdrawal options.
The exchange has also made it known that it “may exempt customers from this charge in its sole discretion.”
Six Years Coming
Bitfinex launched 6 years ago as a peer-to-peer bitcoin exchange, offering digital asset trading services to users in 52 countries. Based on a recent report the exchange processed more than $1 billion in total, over the last month alone.
With this hike in withdrawal fees, the exchange is expected to record more profits in the long run.
The withdrawal fee hike is expected to make its platform users shift their attention towards cashing out using cryptocurrency and probably having its changed to FIATs elsewhere. Whether this is a bad move or a good one, only time can truly tell.