There are myriad reports suggesting that Coinbase cryptocurrency exchange is limiting Bitcoin withdrawals. One user just tried to send Bitcoin from Coinbase to his cold, offline wallet. He was soon met with new Coinbase withdrawal policy, which displays “your send failed. You’ve exceeded the maximum limit for Crypto sends. The transaction can not be completed.”
This new Coinbase policy enforces $5000 per week withdrawal limit which means at current Bitcoin’s price of ~$35000, it can take you 7 weeks to withdraw one full bitcoin.
Imagine Bitcoin hitting $100,000 in future and with policy still in force, you will take 20 full weeks to withdraw one bitcoin.
The user whose tweet got viral was contacted by Coinbase support and unlocked his bitcoin so that you could withdraw it in one go. Coinbase support blamed it on algorithms for freezing his bitcoin. He, like us, endorses self custody of bitcoin and other cryptocurrencies that you own.
We believe once KYC has been done, Coinbase or any other centralized exchange (CEX), should not have any withdrawal limit. Any sort of restriction on withdrawal limit is highly concerning and clearly a bad business practice.