- Nexo has implemented a spate of sudden policy changes with little notice recently.
- The most recent change was a hike in fiat fees, charging up to $25 for on/off boarding.
- The crypto exchange has updated its policy to compromise on banking fees.
Nexo has been on the firing line lately for implementing policy changes with little to no advanced notice for its users. On May 21, the crypto exchange stoked customer outrage by suddenly charging for fiat withdrawals, putting its hard-earned user loyalty to the test.
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However, in what appears to be an attempt to make amends for the fee hike, the company notified its users on June 7 that Platinum members will now get one free fiat withdrawal per month.
Nexo Compromises
In a June 7 email, Nexo notified its users that Platinum members, who currently receive one free crypto withdrawal per month for certain tokens, can now opt to use that free monthly withdrawal for fiat transactions instead, thereby allowing Platinum members to circumvent the newly implemented fiat withdrawal fee to some extent.
Nexo operates a multi-tier Loyalty Program with Base, Silver, Gold, and Platinum levels. To qualify for the Platinum tier, users must maintain a portfolio ratio of at least 10% in Nexo’s native NEXO tokens.
Given the volatility of crypto asset prices, a user’s specific loyalty tier can fluctuate depending on the value of their total holdings and NEXO token balance at any given time.
While the updated policy was not a complete reversal of the newly implemented fiat fees, instead, extending the existing free monthly withdrawal perk to cover fiat transactions still represents a degree of compromise by Nexo.
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The free withdrawal olive branch to Platinum members comes after Nexo faced intense criticism over the fee increase in May.
User Backlash
May 21 saw Nexo spark a wave of user outrage as it announced a sudden fee hike on bank transactions. Under the new bank transfer fee structure, Nexo began charging £5/€5 for FPS/SEPA bank withdrawals and up to $25/£25 for SWIFT transactions.
Nexo stated that the new charges represented costs passed on from third-party banking partners.
A key point of contention was the abrupt timing of the announcement, with users complaining the new fees were implemented at or around the same time they were notified.
The outcry was further amplified as it came weeks after Nexo had implemented a 1% repayment fee on its borrowing facility with little notice to users.
On the Flipside
- Crypto exchanges frequently adjust policies and fees to account for changing market conditions and operational costs.
- Banking partners connect legacy and crypto markets.
Why This Matters
Although Nexo has not made a complete U-turn on fiat fees, the compromise strikes a balance and indicates the company is continuing to listen to user feedback.
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