Exchanges' Hidden Withdrawal Rules Cause Headaches for Crypto Investors

A looming deadline for crypto withdrawals has highlighted two little-known rules that can hold up funds on exchanges. The withdrawal hold and minimum withdrawal amount are not directly related to the deadline itself, but they can cause issues if not carefully planned around.

According to a survey by CryptoTicker, only one of 13 exchanges checked had its rules clearly documented on publicly accessible help pages. Kraken was found to have a 72-hour withdrawal hold for certain instant purchases made via debit or credit card, as well as through digital wallets like Apple Pay and Google Pay.

However, the hold period applies not just to the initial purchase but also to subsequent top-ups made by card in US dollars. What's more, the hold works across currencies, so swapping the held amount into another currency beforehand won't help. The 72-hour hold is mechanically counted down regardless of which deadline is closer.

The minimum withdrawal amount is another hurdle that can be costly for small holdings. Kraken's guide to crypto withdrawals states that a transaction cannot be processed if the balance is below the minimum amount, leaving residue amounts stuck on the exchange.