Coinbase Introduces Conversion Fees Above $75M Monthly Volume
Coinbase, the largest cryptocurrency exchange in the United States, has implemented commission fees for conversions from USDC (USD Coin) to USD, surpassing $75 million. Members of the Coinbase Exchange Liquidity Program in Tier 1 and Tier 2 will be exempt from these fees. This announcement regarding conversion fees was made on the Coinbase help page on January 30th. Starting from February 5th, Coinbase will begin charging a fee on net conversions of USDC to USD that exceed $75 million within a 30-day period. The fee structure is as follows: 0.10% for monthly volumes between $75 million and $150 million, 0.15% for volumes between $150 million and $500 million, and a maximum rate of 0.20% for volumes exceeding $500 million. All fees will be directly deducted from the USDC to USD conversion amount.
Coinbase clarifies that the net conversion is calculated by subtracting the total USD to USDC conversion volume from the total USDC to USD conversion volume over the past 30 days. In other news, JPMorgan analysts downgraded Coinbase’s stock to an “underweight” rating on January 23rd due to the declining price of Bitcoin and the listing of shares for spot Bitcoin exchange-traded funds. This resulted in Coinbase’s stock hitting a monthly low of $121 on January 25th. Its current stock price is $132.82, which is still nearly 20% lower than its value at the beginning of the month. Despite this setback, Coinbase remains a prominent supporter of the cryptocurrency market in the United States.
Coinbase publicly responded on January 22nd to the U.S. Treasury Department’s Financial Crimes Enforcement Network’s (FinCEN) proposal to increase scrutiny on crypto mixers, dismissing it as a “waste of time.” The company’s nonprofit advocacy organization, Stand with Crypto, has been actively monitoring the stance on cryptocurrencies among U.S. lawmakers, identifying up to 18 crypto-friendly Senators. Coinbase is engaged in its own legal battle against the Securities and Exchange Commission (SEC), as the SEC filed a lawsuit on June 6, 2023, accusing the exchange of violating federal securities laws. Analysts believe that Coinbase has a 70% chance of successfully having the lawsuit dismissed.
6 thoughts on “Coinbase Introduces Conversion Fees Above $75M Monthly Volume”
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I can’t believe Coinbase is making even more money off of us. It’s ridiculous!
I can’t believe Coinbase’s stock is still down. They really messed up this time.
Stand with Crypto, Coinbase’s nonprofit advocacy organization, is doing a fantastic job monitoring the stance on cryptocurrencies among US lawmakers. It’s crucial to have support from politicians who understand the potential of crypto and can create positive regulations. Kudos to Coinbase for actively engaging in advocacy!
Great, as if the declining price of Bitcoin wasn’t enough, now we have to deal with these fees too.
It’s great that Coinbase clarified how the net conversion is calculated. It helps users understand the fee structure better and make more informed decisions. 🧮💡 Transparency is key, and Coinbase seems to be handling this well.
I’m sick of Coinbase nickel and diming us. It’s time to find a better exchange.