Xapo to Pass On Bitcoin Network Fees to Users

Bitcoin wallet provider Xapo has told its customers that they will soon have to pay the network fees for outbound transactions.

May 17, 2017 at 10:00 a.m. UTC

Updated Sep 11, 2021 at 1:19 p.m. UTC

Bitcoin wallet provider Xapo has told its customers that they will soon have to pay the network fees for outbound transactions from their accounts.

When a user broadcasts a bitcoin transaction (or one for any other digital currency), they attach a fee that acts as an incentive for miners to include that transaction in their next block.

The higher the fee, the more likely a miner will want to include it, as they’ll collect any associated fees should their block be accepted by the wider network.

According to an email sent to users by Xapo, they’ll now be responsible for this fee, though the startup clarified that any transfers between Xapo accounts won’t incur this charge. It cited growing network activity as the major factor behind the policy shift.

The startup explained:

"Due to the increase in transaction volume of the bitcoin network, we'd like to give our users some control over their transactions. That being said, Xapo will give you the ability to select which type of fee you'd like to pay – a standard or high priority fee – thus allowing you to choose how quickly you'd like for your transaction to be processed!"

While Xapo didn’t offer a firm date on when the policy change would come into effect, the email indicated that it would occur "in the next couple of days".

Metro turnstiles image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.