<p>Limits could be in place for a number of reasons, such as:</p>

<ul>
<li><p>Regulations imposed by the government of the country the exchange is operating within (eg unverified customers can only withdraw a certain amount)</p></li>
<li><p>The majority of the exchange's coin reserves are held in an offline, cold storage wallet. So a very large withdrawal may require more coins than the exchange has available in an automated hot wallet (this is a security consideration)</p></li>
</ul>

<p>Every exchange will have its own considerations in this regard, but these examples should give you some basic understanding of why limits would exist. </p>

CC BY-SA 3.0
2018-02-08T11:31:01.327Z
Sounds wrong. Governments don't regulate the exchanges as far as I know. If they can do $200 000 for a level 3 individual then then they can do the same for a level 1. If you do normal trades with banks there is no restriction. That stuff about it being in cold storage is wrong.
jack black
CC BY-SA 3.0
2018-02-11T10:09:58.307Z
@jackblack please remain friendly and polite, no need for that language here
meshcollider
CC BY-SA 3.0
2018-01-25T02:24:31.893Z
2018-01-25T02:24:31.893Z
chytrik
<p>Many crypto exchanges impose quite low limits on withdrawing balances from their sites. For example Binance has an equivalent limits of 100 BTC for a daily withdrawal.</p>

<p>The question is, why do they need to impose a limit at all? Are the customers coins not in segregated custody, and when sold in a transaction on the exchange, the funds should be there irrespective of the size of the transaction. In short, why would an exchange need to limit withdrawals at all?</p>

<exchanges>
Why do crypto exchanges impose withdrawal limits for BTC and other coins
Pierre Cardagan
# Why do crypto exchanges impose withdrawal limits for BTC and other coins

(Asked by: username_0 on 2018-01-25)

Many crypto exchanges impose quite low limits on withdrawing balances from their sites. For example Binance has an equivalent limits of 100 BTC for a daily withdrawal.

The question is, why do they need to impose a limit at all? Are the customers coins not in segregated custody, and when sold in a transaction on the exchange, the funds should be there irrespective of the size of the transaction. In short, why would an exchange need to limit withdrawals at all?

**Tags:** exchanges


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## 1 answers

### Answer by username_1 on 2018-01-25. Score: 1

Limits could be in place for a number of reasons, such as:

* Regulations imposed by the government of the country the exchange is operating within (eg unverified customers can only withdraw a certain amount)
* The majority of the exchange's coin reserves are held in an offline, cold storage wallet. So a very large withdrawal may require more coins than the exchange has available in an automated hot wallet (this is a security consideration)

Every exchange will have its own considerations in this regard, but these examples should give you some basic understanding of why limits would exist.

> **Comments:**
> **username_2**: Sounds wrong. Governments don't regulate the exchanges as far as I know. If they can do $200 000 for a level 3 individual then then they can do the same for a level 1. If you do normal trades with banks there is no restriction. That stuff about it being in cold storage is wrong.  
> **username_3**: @jackblack please remain friendly and polite, no need for that language here  

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