Coinbase Imposes Conversion Fees on High Volume USDC to USD Transfers
Summary:
Coinbase, America's leading cryptocurrency exchange, has implemented conversion charges affecting transfers from USDC to USD exceeding $75 million, starting from February 5th. However, Tier 1 and Tier 2 members of the Coinbase Exchange Liquidity Program are exempt. Transaction fees range from 0.10% to 0.20% based on volumes, directly deducted from the conversion amount. Despite Coinbase's stock taking a hit recently, the exchange continues its advocacy in the cryptocurrency market and legal battle with the SEC.
Coinbase, the largest cryptocurrency exchange headquartered in the U.S., has implemented conversion charges for transfers from USDC to USD exceeding $75 million. This change, however, doesn't apply to members within Tier 1 and Tier 2 of the Coinbase Exchange Liquidity Program. The new fee policy was disclosed on the company's help page on January 30th and will take effect from February 5th. Per this update, Coinbase will levy charges on net conversions from USDC to USD above $75 million in a constantly rolling 30-day span. A customer will be charged a 0.10% fee for a monthly transaction volume between $75 million to $150 million, 0.15% for transactions between $150 million and $500 million, and a peak rate of 0.20% for transactions surpassing $500 million. All these charges will directly be subtracted from the USDC to USD conversion sum. In the official announcement, Coinbase outlined that the net conversion is computed by deducting the total conversion volume of USD to USDC from that of USDC to USD over the preceding 30 days. On January 23rd, JPMorgan analysts lessened their rating of Coinbase’s stocks to “underweight,” referencing the declining Bitcoin price and shares of spot BTC ETFs. Coinbase’s shares sank to a monthly low of $121 on January 25th and currently stand at $132.82, nearly 20% lower than at the start of the month. Despite these setbacks, Coinbase maintains its position as a prime promoter of the cryptocurrency market in America. The exchange recently expressed disagreement publicly to FinCEN's recommendation of intense scrutiny for crypto mixers, describing it as “inefficient." The exchange's nonprofit organization, Stand with Crypto, diligently surveys the U.S. lawmakers' position on cryptocurrency, recently reporting as many as 18 crypto-supportive Senators. Coinbase is also actively engaged in a legal skirmish with the Securities and Exchange Commission (SEC), who sued the company on June 6, 2023, for alleged violations of federal securities regulations. However, experts speculate that Coinbase has a 70% likelihood of getting the lawsuit entirely dismissed.
Published At
1/30/2024 1:43:46 PM
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