Coinbase in trouble? That’s the rumor that’s been spreading like wildfire on social networks. At issue is a limit on withdrawals, now capped at $5,000. Is this really the case, and what has Coinbase said in response?
Rumor circulating about withdrawal limits on Coinbase
As is often the case, this rumor originated on X (formerly Twitter). Bitcoiner Colin Brown sounded the alarm two days ago, explaining that he had come up against a new withdrawal limitation, implemented on October 13. It would now no longer be possible to withdraw more than $5,000 per week:
@Coinbase is limiting bitcoin withdrawls. I just tried to send BTC from Coinbase to my cold wallet, and encountered a NEW $5k/wk withdrawl limit policy (implemented 10/13). I’ve been a Coinbase customer for 10 years. GET YOUR BITCOIN OFF EXCHANGES!!!!
– Colin Brown (@thecolinbrown) October 23, 2023
The next day, Colin Brown confirmed that Coinbase customer service had sorted things out, but that he didn’t believe their justifications:
“They gave me a not very credible explanation about algorithms. […] The weekly withdrawal limits are a tasteless [sic] attack on Bitcoin. “
The rumor was further fueled by other elements. On the same day, Coinbase reported temporary difficulties in processing certain transactions. The problem was resolved within an hour, but the two pieces of news were enough to drive up the “FUD” on social networks. It should also be remembered that the trial of Sam Bankman-Fried, which is currently receiving a great deal of media coverage, has brought the issue of the security of customer funds on major exchange platforms back to the forefront.
Coinbase reassures its users
” In general, Coinbase does not limit how many cryptocurrencies you can sell to fund your cash balances (USD, GBP, EUR). Withdrawals from Coinbase depend on the payment method you use to withdraw. “
The important thing to remember, then, is that withdrawals from Coinbase have always been subject to certain rules, and these haven’t changed recently. It goes without saying that users wishing to have total control over their cryptocurrencies will use self-hosted wallets instead. As for the rest, these are the historical drawbacks of exchange platforms, which led to the Bitcoiners’ maxim: “Not your keys, not your coins”!