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Amid the ongoing surge in Bitcoin (BTC) transaction fees, some cryptocurrency exchanges have moved to adjust the cost of withdrawing BTC from their platforms.
U.S.-based exchange Kraken has increased Bitcoin withdrawal fees to match current on-chain fees, the company’s support manager wrote on Reddit on May 10.
“This helps ensure that withdrawals are processed on the network in a timely manner,” said the support manager.
A Kraken representative also referred to the public list of cryptocurrency withdrawal fees and minimum withdrawal amounts. According to the data, Kraken charges 0.00035 BTC, or about $10, for Bitcoin withdrawals, with a minimum amount of 0.0005 BTC, or $13.
The minimum withdrawal amount for BTC on LN is also significantly different from BTC without Lightning, starting at 0.00001 BTC or less than $1.
The Service Desk Manager also advised customers to consider using Lightning Network (LN) as an alternative. The LN option adopted by Kraken in March 2022 allows users to withdraw BTC from the platform for free.
Withdrawal fees on Kraken are significantly lower than on other major exchanges. Cryptocurrency exchange OKX charges between 0.00096 BTC ($26) and 0.00192 BTC ($53) for Bitcoin withdrawals, an OKX spokesperson told Cointelegraph. The minimum withdrawal amount is 0.001 BTC or $27.
OKX declined to comment on whether the exchange would increase withdrawal fees due to the surge in Bitcoin transaction costs. However, the platform also implemented LN in 2022.
However, Kraken is not the only exchange to have adjusted its BTC withdrawal fees amid the ongoing Memcoin trading frenzy.
Cryptocurrency exchange KuCoin uses dynamic adjustments to BTC withdrawal fees and minimum withdrawal amounts, a spokesperson for the firm told Cointelegraph on May 10. The adjustment is based on the amount of actual on-chain processing fees so that Kraken is “compatible with the market situation,” the spokesperson noted.
“Currently, our withdrawal fee is between 0.00002 and 0.001 BTC and the minimum withdrawal amount is 0.0005 BTC,” the spokesperson said, adding:
“In terms of Lightning Network implementation, KuCoin has not yet deployed LN, however, we will be actively monitoring the market and making adjustments as needed.”
KuCoin’s current Bitcoin withdrawal fees are similar to those applied on other exchanges such as Huobi or Binance.
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“Withdrawal fees on the network are increasing due to the congestion of the BTC network. The current withdrawal fee is 0.001 BTC,” a Huobi spokesperson told Cointelegraph on May 11. Huobi also hasn’t implemented Lightning yet. “The Lightning network is currently under discussion,” a Huobi spokesperson said.
According to public information, Binance also charges 0.001 BTC ($27) as a BTC withdrawal fee, and the minimum withdrawal amount is 0.002 BTC or $55.
Despite the relatively high BTC withdrawal fee, Binance is still experiencing major withdrawal issues due to the recent ongoing “mempool” congestion. On May 8, Binance was forced to suspend withdrawals twice in 12 hours due to a 400,000 freeze. transactions in the Bitcoin mempool. Events have prompted Binance to seriously consider implementing LN.
Several exchanges, including Coinbase, Bybit and Crypto.com, did not respond to Cointelegraph’s request for comment.
