I am using a major us based exchange and managed to pass the higher verification level (by providing all kinds of private information, such as credit history, income source, id, employment, etc ... ) and was granted to deposit and withdraw up to $1 million a day. After putting in a large amount of USD, i was told "due to compliance change", they now only allow $100,000 dollar withdrawal a year! though i could still convert USD into crypto currency and withdraw to another exchange and sell, it causes a loss. they also refused to give any details on the 'compliance change" and didn't explain why there was no notice. I was wondering whether such act, lowering the withdraw limit significantly on fully verified clients without notice, is legal and is there any action i can take. thank you!
They lied to you when they told you 1 mil
Regardless of the amount of verification, every withdrawal/deposit from a legit platform over 10k MUST be reported by the platform, with a written explanation of the details of said transaction. No exchange in their right mind would allow you such a limit; you could possibly generate an expensive amount of paper work to accurately record your transactions in and out of the platform. Fees from trading are cool and all, but a compliance officer would need to file the report, and trust me, they are expensive.
By using an exchange, you are usually subject to the TOS. I dont know what exchange you are on, but usually the TOS states they can change stuff like this at their discretion. It's suck, but this is the nature of our unregulated space at the moment.
If they dont spell this out in the TOS, they are fair game.
