Coinbase, the largest crypto exchange in the United States, has implemented commission fees for net conversions from USD Coin to U.S. dollars exceeding $75 million in a 30-day period. Exceptions will be made for members of Coinbase Exchange Liquidity Program’s Tier 1 and Tier 2.
The announcement, made on Coinbase’s help page on Jan. 30, states that starting Feb. 5, the exchange will impose fees on USD Coin to U.S. dollar net conversions exceeding $75 million in a rolling 30-day period.
Customers will incur a 0.10% fee for monthly volumes between $75 million and $150 million. For transaction volumes ranging from $150 million to $500 million, the fee will be 0.15%, and a maximum rate of 0.20% will be applied to volumes surpassing $500 million. All fees will be directly deducted from the USDC to U.S. dollar conversion amount.
As clarified by Coinbase, the net conversion is calculated by subtracting the total U.S. dollar to USDC conversion volume from the total USDC to U.S. dollar conversion volume over a 30-day period.
Coinbase’s move comes shortly after JPMorgan analysts downgraded the exchange’s stock to an underweight rating, attributing it to the declining price of Bitcoin and the listing of spot BTC exchange-traded funds. Despite this, Coinbase continues to be a prominent advocate for the crypto market in the U.S.
On Jan. 22, Coinbase publicly responded to the U.S. Treasury Department’s Financial Crimes Enforcement Network’s proposal to tighten scrutiny over crypto mixers, labeling it as “a waste of time.” Additionally, the exchange is actively involved in legal battles, including its ongoing fight against the U.S. Securities and Exchange Commission’s lawsuit filed on June 6, 2023. Analysts suggest Coinbase has a 70% chance of securing a complete dismissal of the lawsuit.