The withdrawal limit for traders has been temporarily lowered by cryptocurrency-backed loans provider CoinLoan. The corporation cited the present market crash as the reason for the decision.
Due to the change, customers are now limited to a $5,000 maximum withdrawal limit each day.
In their announcement, they noted the following: “the interest we pay on the Interest Accounts is yielded by issuing overcollateralized loans to other platform users. Hence in some instances, the estimated date of a complete withdrawal of assets from the Interest Accounts comes before, not after, loan closure.”
The company cited “balance the flows of cash and minimize liquidity-related disturbances,” as a reason for the withdrawal restriction.
Following the current market turmoil, CoinLoin joins a number of high-profile crypto firms that have recently limited withdrawals due to different sorts of financial difficulty. The European crypto lender’s limitation of withdrawals is the most recent example of this.