That may be true, but they should disable also deposits, until needed identifications are comitted. If a service changes account limits, it must allow customers to withdraw their funds. Everything else like keeping money is scamming customers.
I agree with you on that part. It seems that all exchanges do this, based on the plenty complaints that I have been reading through lately. It's shady and misleading at the same time because this is done on purpose. If people sign up to an exchange and figure out that they first have to verify themselves before they are allowed to deposit and start trading, the majority of them will just refrain from doing so and look for a different exchange that doesn't require up front verification. No one is looking forward to hand over very sensitive/precious personal information to an unknown entity, even if it concerns Coinbase. Unfortunately, I don't see exchanges change this way of operating since it will work against them due to the aforementioned scenario.
