Kraken hikes Bitcoin withdrawal fee to $7, flat

Kraken hikes Bitcoin withdrawal fee to $7, flat

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Kraken, one of world’s largest and oldest cryptocurrency exchanges, said it is raising the withdrawal fee for Bitcoin to a flat $7 (0.0025 BTC).

In a message to its clients, quoted by Cryptocoin News, the exchange justifies the higher fee with the rising miner fees it is paying in order to ensure fast transactions. “Why the change? Kraken always pays a miner fee that is sufficient to ensure transactions are processed quickly. However, the average miner fee required to prioritize and confirm Bitcoin transactions has been increasing for some time without a corresponding increase in the fee we charge to clients”, the exchange wrote.

Those fees are usually paid to miners so they will include the transaction in their next mined block. According to Kraken, the new flat $7 fee could cover the average $5 they pay for each transaction.

Current data shows that nowadays bitcoin miners get in fees more than ever – around $1.8 million per day, thanks to the frantic interest in it and other digital currencies in the past weeks.

Recently Kraken expanded its Ripple pairs offering with EUR, USD, JPY, CAD and added trading in Dash, because of the rising demand and prices.

Founded in 2011, San Francisco-based Kraken is the largest bitcoin exchange in euro volume and liquidity. It offers margin trading in the cryptocurrencies bitcoin, ether, litecoin, monero, dash and several others in pairs with Canadian dollars, US dollars, British pounds, euro and Japanese yen.

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