Transaction limits and understanding why they are important

So you successfully bought crypto and now you want to buy more but you have hit your transaction limit. Why can’t you buy more? There are a variety of reasons for transaction limits, mainly to limit fraudulent transactions but also to comply with regulatory requirements. Let's break this down. 

Credit card, bank account information, social security numbers and IDs are stolen every day. Cryptocurrency isn’t the only place that fraudsters transact, but measures can be taken to ease the financial burden if this happens. Simply put, transaction limits can be put into place to prevent fraudsters from draining victims' bank accounts. 

Certain laws and regulations often require financial institutions to verify the identity of their customers (KYC) and to report suspicious activity, such as unusual or larger amounts of transactions. In order to comply with anti-money laundering (AML) laws or KYC requirements, setting transaction limits can help ensure certain requirements are met. 

Other scenarios include preventing huge transactions from manipulating the markets, affecting platform liquidity, or even for a better user experience by preventing delays in larger transaction amounts that require manual handling.