Coinbase Taxes Large USDC To USD Conversions

Coinbase has said that it will start charging fees for converting stablecoin USD Coin (USDC) into regular US dollars (USD).

The decision was written up in a blog post on the exchange’s website and leaves a lot of users frustrated.

Coinbase’s Tiered Fee Structure And Client Exemptions Unveiled

According to Coinbase, the new fee structure is aimed at large clients who convert USDC to USD through transactions worth more than $75 million monthly. Different fee rates apply depending on the transaction amount.

Coinbase will charge a 0.1% fee for exchanges between $75 million and $150 million. A slightly higher fee of 0.15% will be charged for transactions between $150 million and $500 million. Notably, there will be a 0.2% fee for transfers over $500 million.

These exchange fees will not apply to Coinbase Prime customers who hold over $500 million in assets on the platform or keep an average of $100 million in USD/USDC over a month.

Also, people who meet the standards for Coinbase’s exchange liquidity program’s Tier 1 or Tier 2 will not have to pay any fees for converting USDC as long as they meet their monthly obligations.

Recently, Coinbase encouraged its users to move their assets from Tether (USDT) to USD Coin (USDC). Coinbase emphasized that USDC is solid and reliable because of its high-quality reserves. However, one can argue this applies as much to USDC as it does to USDT.

Coinbase has simultaneously waived the USDT to USDC conversion fees for most regions in the Coinbase Simple Trade trading part. That should make it easier for clients to move funds between stablecoins.

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