CoinLoan, a popular fiat-supported lending platform, has recently announced they will be temporarily reducing the withdrawal limit on their platform. This decision comes as a direct response to the press and market sentiment surrounding the instability of the cryptocurrency markets.

What Is CoinLoan?

CoinLoan is a peer-to-peer lending platform which enables users to borrow fiat currency using cryptocurrency as collateral. In a nutshell, users can borrow a loan and pledge their digital assets to secure the loan, then when the loan is repaid, the digital assets are returned.

Why Have CoinLoan Reduced Their Withdrawal Limit?

CoinLoan have decided to lower the withdrawal limit in order to ensure the safety of their customers in light of the recent market volatility and instability. CoinLoan reported that they “believe prudent caution is the best way to protect our customers in the event of any systemic risk and to avoid any unnecessary losses”.

What is the New Withdrawal Limit?

The new withdrawal limit is set at 30,000 EUR. This reduction was implemented on 21st February 2021 and is planned to stay in place for the foreseeable future. CoinLoan stated that their aim with this change is to “further guarantee the safety of our clients’ funds” and to “minimize any potential risks”.

What Else is CoinLoan Doing To Keep Their Customers Funds Secure?

In light of the recent market volatility, CoinLoan are also taking additional steps to ensure the safety of their customers’ funds. These steps include:

  • Increased monitoring of the markets - CoinLoan have increased their monitoring of the markets to keep an eye on any potential changes in sentiment which could affect the safety of their customer’s funds.
  • Recalibration of risk modeling - CoinLoan are also recalibrating their risk modeling to ensure it is in line with the current markets.
  • Guaranteed customer funds - CoinLoan are also guaranteeing customer funds to further ensure the safety of customer funds.

CoinLoan have stated that these measures are only temporary and will be in place until the cryptocurrency markets reach stability. The reduction of the withdrawal limit is another step from CoinLoan to ensure the safety of customer funds.

Conclusion

CoinLoan have recently announced they will be temporarily reducing the withdrawal limit on their platform in response to the press and market sentiment surrounding the instability of the cryptocurrency markets. The new withdrawal limit is set at 30,000 EUR and CoinLoan have stated that these measures are only temporary and will be in place until the markets reach stability.