San-Francisco based cryptocurrency exchange Kraken has announced that it is lowering its withdrawal fee from the roughly $7 flat fee (.0025 XBT) proposed several days ago to a flat fee of about $3 per withdrawal (.0001 XBT). The company cited customer preference in its decision, and has suggested that it will conduct batch withdrawals to help control costs.
The earlier decision to raise the withdrawal fee was attributed to increased costs that the exchange was experiencing due to miner fees. The exchange claimed that the .0025 XBT fee represented the average price that it paid for transactions. The fee increase was designed to allay those costs by passing them on to the customers who use the exchange. In making the change, the company also advised its users via email to expect slightly slower withdrawal times due to the batching process.
“Many clients have said they prefer a lower bitcoin withdrawal fee even if it means slower transactions. Accordingly, we are now sending withdrawals together in batches to reduce cost. This allows us to reduce the bitcoin withdrawal fee to: 0.001 XBT.
We are pleased to offer clients a significantly reduced fee, but keep in mind that bitcoin withdrawals will be a bit slower due to the batching. Withdrawals will take anywhere from 2 minutes to 5 minutes longer to broadcast to the network while waiting to be batched together with other payments."