Coinbase, the only major Bitcoin exchange headquartered in the United States, has announced that it is drastically increasing instant buy and sell limits to USD 25,000 per day for ACH and USD 7,500 for debit cards. This limit will be available for customers who complete the full verification process.
In the past, Coinbase had a weekly, not daily, instant buy limit of USD 1,000, even for customers who completed full verification and had a long history with Coinbase. Over the years, Coinbase has been upping the limits but this new increase is by far the most drastic limit increase for their instant buy feature. Just before this limit increase, Coinbase customers could only buy USD 25,000 per week with maximum verification, so this is a 700% limit increase.
This move is probably in response to the entrance of Huobi and OKCoin into the United States market, via HBUS and OKCoin USA. Huobio and OKEx, which is closely related to OKCoin, are the biggest crypto exchanges in the world and far bigger than Coinbase. HBUS is offering daily withdrawal limits of USD 200,000, far more than Coinbase even with this drastic limit increase. This is a good example of how competition improves the market for consumers, the move to increase instant limits to USD 25,000 is probably in order to be competitive with HBUS and OKCoin USA.
There is a major caveat to Coinbase’s limit increase though. They say crypto will instantly appear in user’s accounts after instant buying and will be available to buy and sell on the Coinbase platform. However, customers won’t be able to withdraw funds until the transaction is final with their bank. This might take a day for debit card transactions and also a day for wire transfers, which is much better than the three to five days it used to take. ACH transfers would still take from three to five days before users can withdraw funds.
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