New York-based bitcoin exchange Coinsetter has instituted a new $65-per-month account fee, a move it says is aimed at offsetting its compliance costs.
In an email addressed to users and circulated on social media, Coinsetter told users that it was instituting the fee in a bid to “compensate for the increasing costs of holding bitcoin accounts in a US-based setting”. The new fee is scheduled to go into effect on 1st December.
When reached for comment, the exchange confirmed the new fee and that proceeds would be used to defray compliance costs.
“The cost of maintaining smaller accounts is too expensive in the current environment,” CEO Jaron Lukasiewicz told CoinDesk, acknowledging that the move would likely cost Coinsetter its retail customer base:
“This fee is necessary for us to compensate for the increasing costs of holding bitcoin accounts in a US-based setting, and we anticipate that most retail traders will withdraw their funds and move to another exchange.”
Accounts will be charged $65 on 1st December, but the exchange said that it would offer refunds to customers that choose to withdraw their balances next month.
Coinsetter said it informed users yesterday of the policy change.
The exchange framed the account fee as part of a broader shift toward an institutional trader-based customer makeup.
Exchange chart via Shutterstock