Gemini is implementing new dynamic fees on certain crypto withdrawals.
One of the perks of Gemini as a centralized cryptocurrency exchange is the ability to withdraw coins like Tezos (XTZ) and Ethereum for free. That’s about to change, at least for ETH and ERC-20 tokens.
The company sent out the following email to customers warning of the impending dynamic fees for ETH and ERC-20 tokens. The fee will pass Ethereum gas fees on to customers. Meanwhile, non-ERC-20 tokens will incur a flat fee.
In the coming days, we will be making some changes to our withdrawal fee schedule. Effective Wednesday, June 15, crypto withdrawals from the Gemini platform (ie. when you send crypto to an external wallet or to another exchange) will be subject to a dynamic or flat fee.
Dynamic fees will apply to withdrawals of ETH and ERC-20 tokens (except Gemini dollar (GUSD)). The dynamic fee will correspond to Ethereum gas fees, which vary based on network activity. Any crypto withdrawal from the Gemini platform that’s not ETH or an ERC-20 token will instead incur a flat fee. The flat fees for non-Ethereum crypto withdrawals can be found here.
These fees are not intended to generate revenue for Gemini. These fees will be used to cover the network fees paid to blockchain miners for your withdrawal transaction. Miners process crypto transactions and secure the network on which those transactions are processed.
On the Ethereum network, network fees are known as gas fees and are paid in ETH. Gas fees vary over time and by activity, with complex smart contracts and code requiring more gas.
More on gas fees
We understand that free withdrawals have been a popular feature, and appreciate your understanding and willingness to adapt and grow with us. We will continue to be transparent with all of our users about changes to our platform as we continue on our mission to unlock the next era of financial, creative, and personal freedom.