Using a cryptocurrency exchange is often constricted by certain limits and lack of access to all expected features. In the case of Bittrex – which is quickly becoming the most popular altcoin exchange – users may have missed out on some policy changes introduced in 2016. Any account created on or after August 1st of this year which remains unverified will not have the option to withdraw BTC. As some users are discovering, the withdrawal limit is set to zero pending successful identity verification.
Bittrex Limits Unverified Accounts
It is not entirely surprising to see cryptocurrency exchanges making drastic changes to the way people use their platforms. Hardly any exchange will introduce major changes to the deposit system, since there is no reason to limit that type of activity. Users are more likely to encounter issues when it comes to moving funds off the exchanges again. This is particularly true when one does not stay abreast of policy changes on a regular basis.
Bittrex made some big changes to its terms at the end of 2016. During that time, the company announced that users might be affected depending on the verification information they had submitted to the company. Any user who did not adhere to the new Know Your Customer (KYC) policy would still be able to use Bittrex, but they would not be able to move money off the platform. These users will have a BTC withdrawal limit of 0 until documents are submitted to the company. The change has proven confusing to a lot of people.
Notably, this change only affects accounts created on or after August 1st. Any account created before that date which remains unverified has a daily withdrawal limit of 0.025 BTC. That is annoyingly low for a lot of users, for obvious reasons. Everyone wants to get their money off an exchange whenever they have made some profit. However, without submitting any personal identification, that will be virtually impossible when using the Bittrex platform.
Users who have verified their accounts still have some other limits to take into account. Most of these changes have been active since October 2016, but it is worth reiterating them. Basic accounts have a 3 BTC withdrawal limit per day, which is a solid amount. Users who have an enhanced account can move up to 100 BTC per day. Exchanges have to come up with a way to ensure they can successfully verify user identities. Governments all over the world are cracking down on companies in the financial sector which do not adhere to these rules.
Unfortunately, Bittrex may face some backlash for not letting unverified customers withdraw funds yet still give them access to deposit addresses. The company’s policy is there for everyone to read and there is no intention by the company to hide this fact from their users whatsoever. However, a lot of people will be caught by surprise when they find their withdrawal limit is zero. The best way to solve this problem is by verifying your identity accordingly, or using a different exchange which does not impose a zero-BTC limit. Every trading platform has some limitations in place, though.
It is remarkable to see a company announce such rules nearly a full year before they start imposing them as Bittrex did. At the same time, it appears most people have forgotten about these changes already. It is unlikely Bittrex will lose a lot of users because of this change, but some people have certainly been voicing their displeasure lately. Then again, the information has been available for everyone to see for quite some time now. We might see more exchanges take similar precautions as time progresses. Limiting BTC withdrawals to zero may seem severe, but it can also be justified.