Posted 2 years ago | by Ben Armstrong
Coinbase Caps Withdraw at $10 in Bitcoin a Day for Some Users
Headquartered in San Francisco, Coinbase is known as the major United States-based cryptocurrency exchange and wallet service. There was recently a spike in reports that some users cannot withdraw more than $10 per day.
Reports last week emerged that the exchange had put a $10 daily withdrawal limit for some users by a Redditor and self-described Coinbase user. The Reddit user claims that Coinbase denied his application for higher withdrawal limits. Also, he shared a screenshot which shows that the maximum amount of daily withdrawal from Coinbase in Bitcoin (BTC) was $10 for his account.
The complaint article has been attractive over 40 comments that most Redditors are giving skepticism expression to Coinbase’s services.
What is Going on With Coinbase?
Besides some users expect that Coinbase would enforce more similar restrictions if crypto prices cross all-time high thresholds, the others suggested that it is a “literal scam amount” with a $10 daily withdrawal limit.
Meanwhile, there are some users also mentioned the exchange is “about the only option for U.S.-based persons.”
The alleged daily withdrawal limit by the exchange comes while Coinbase and Ripple recently announced a joint initiative to drive blockchain and crypto adoption in the United States. The need for clearer regulations that protect exchange users is clear.
More Regulations are Needed
Coinbase has become one of the most popular digital asset platforms in the USA, and its services are are available in more than 100 countries. As a leader in digital assets, it is vital that Coinbase demonstrate a commitment to integrity and transparency.
At The Market Integrity Working Group on January 23, Coinbase executive Rachel Nelson and Ripple exec Breanne Madigan together announced the formation of the group.
From the announcement:
“To improve market integrity and provide consumers the confidence they deserve, Congress may need to enact legislation to support the orderly and secure functioning of crypto markets.
Such legislation could expand the Commodity Futures Trading Commission’s (CFTC) authority to include the regulation and oversight of digital commodity exchange markets.”
It is not only Coinbase that has been facing withdrawal-related complaints on Reddit recently. A popular Finnish crypto exchange, LocalBitcoins, was also alleged to quietly suspend user accounts, some users claimed that they have to wait for at least 14 days to delete their accounts to withdraw their Bitcoin.
For the moment, there is little information on this phenomenon, but it would appear that there may be more happening under the surface than we realize.