Finland-based bitcoin startup LocalBitcoins has announced a new bitcoin transaction fee system that will be put to effect around 19th-21st June, in order to meet the raising bitcoin network fees.

“In order divide the costs of handling Bitcoin transactions in a fair manner we are introducing deposit fees for incoming transactions. At the same we will lower Bitcoin sending fees for all customers,” the announcement said.

With the company’s old transaction fee system allows users to pay a transaction fee when they send bitcoins out from LocalBitcoins to a different bitcoin wallet. This amount includes the cost for the company to send customers’ transaction as well as cost for LocalBitcoins to manage the deposits used to send transactions.

The new deposit fees enables customers those who make various small deposits, to pay a larger share of the overall transaction costs as well as customers who send out transactions will enjoy lower fees.

“All fees will be adjusted dynamically based on how congested the bitcoin network is,” it added.

Also, with the new fee system, outgoing transfer fees will be smaller than with the old bitcoin transaction fee system.