Cryptocurrency exchange jacks up its prices for high value withdrawals

If you have a lot of money, or look to withdraw your money regularly, Bitfinex wants to charge you a bit more…

One of the key benefits of cryptocurrency to many is the relatively modest fee structure that’s involved. That cost for transactions tend to be lower than their equivalents for fiat withdrawals.

However, one cryptocurrency exchange is, er, looking to do something about that.

Hong Kong-based crypto exchange Bitfinex has announced that it’s revising its fee structure, in an update that it issued at the start of the week. It affects external wire withdrawals, which Bitfinex estimates account for 1% of its customer base. Lower value and demand customers won’t be affected by the changes.

However, those who are looking to withdraw over $1m in a 30 day period will now find themselves subject to a 3% commission cost for the privilege. As many have pointed out, that’s a fee level that actually edges close to the likes of fiat services such as PayPal. It also imposes the charge if a customer wants to undertake more than two fiat withdrawals in a 30 day period. Bitfinex is clearly looking to discourage high frequencies of withdrawals, and high values of them too.

Pushback against the new announcement was pretty instant, with users querying why they’re going to be looking at fiat-level charges, that appear to have been introduced with the bare minimum of notice (in fact, no notice: the changes are “effective immediately”). It looks too that Bitfinex has been hit with a backlog of withdrawal requests as a consequence of the new announcement, and isn’t processing them with the haste some customers are wanting.

More on this as we hear it.

Image: BigStock