Post
Topic
Board Development & Technical Discussion
Re: Who determines bitcoin transaction fees?
by
NotATether
on 02/08/2021, 08:24:44 UTC
Exchanges charge withdrawal fees as a means to make money, and to offset the actual amount of expenses they incur in processing a withdrawal. Exchanges charge a fixed fee to process withdrawals because they have dominant pricing power.

It could also be because said exchanges haven't designed an internal mechanism to adjust the fee of a user's transaction in the first place and just assigned a static constant for everybody regardless of network conditions.