In what could be a major boost to the users of Coinbase, the largest cryptocurrency exchange in the US, it has introduced a slew of changes enabling instant trading and higher purchase limits for its US clients. This has been a welcome change, as in the current scenario, due to regulatory compliance, there are limits on the amount of cryptocurrencies that can be bought and sold via Coinbase account. And, limits varied depending on account age, client’s purchase history and other factors. All these factors made cryptocurrency transactions tedious and time-consuming process.
Initially, the instant transaction feature and other improvements will be only limited to those users who have completed the identity verification process. The purchase limit has been enhanced from $25,000 a week to the $25,000 per day. The 7x increase in limit will allow US customers to avoid multiple layers of approval and delays when acquiring cryptocurrencies which often extended few days. It will also cancel the limits on how much a client can buy or sell cryptocurrencies at a time as soon as the user’s funds reach the wallet.
Another major change is, the exchange has allowed trading in cryptocurrencies immediately after making the purchase compared to the earlier case, where the users had to wait five days for the funds to settle.
Throughout 2017, the exchange has witnessed exponential growth in user’s signup and at the end of November 2017, it had over 12 million users. At one point, when Bitcoin was hitting daily new highs and CME Group announced plans to launch trading in Bitcoin Futures, it witnessed over 100,000 users sign up in just 24 hours. Coinbase is the most preferred cryptocurrency exchange in the US, as it allows users to connect with their bank account and allows trading using fiat money.
Coinbase issued a statement, which mentions:
“With this update, customers will receive an immediate credit for the funds being sent from their bank account. They can then buy and sell crypto to and from their USD wallet right away, but cannot send their funds off the Coinbase platform until the funds coming from their bank have settled.”
“We’ve begun making these updates available and are now beginning to roll them out more broadly. They will be available over the next month to US customers who have completed the identity verification process with Coinbase. Customers who have not yet completed this process will be required to do so before having access to instant purchases, new trading limits and the ability to withdraw or send coins off-platform. We’ll also be working hard to bring these same improvements to our customers around the world.”