As network costs rise, Coinbase will require Pro customers to pay withdrawal fees
September 17, 2020, 5:05PM EDT
1 min read
Coinbase Pro customers will now have to pay crypto withdrawal fees based on an estimate of the network transaction fee, the cryptocurrency exchange announced in an email sent to its users on Thursday.
Up until now, Coinbase Pro had taken care of all transaction fees when users withdraw from its exchange, paying the blockchain network fee on behalf of its users.
"To ensure a smooth experience for our customers and reasonable transaction processing times, Coinbase Pro will charge a fee based on our estimate of the network transaction fees that we anticipate paying for each transaction. In certain circumstances, the fee that Coinbase Pro pays may differ from that estimate. All fees we charge will be disclosed at the time of your transaction," Coinbase said on its website.
As the crypto market has shifted, fees have risen due to higher transactional activity. For example, over the past few weeks gas prices, Ethereum’s version of transaction fees, have consistently floated above 100 gwei. According to Coinbase, this has led to longer wait times and higher fees as users tried to confirm their transactions faster.
Coinbase will disclose the network fee for each withdrawal to customers beforehand on its website or mobile app. Cryptocurrency transfers from one Coinbase wallet to another or between verified Coinbase email accounts will not require a network fee, and users can still have a Coinbase Pro account and hold funds for as long as needed without having to pay any fees.