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Withdrawal Bottleneck Meaning

A withdrawal bottleneck describes a situation where users experience significant delays or restrictions when attempting to withdraw funds from an exchange or financial platform. Bottlenecks can arise from liquidity shortages, regulatory compliance checks, technical issues, or security measures that limit daily withdrawal amounts.

In the crypto industry, withdrawal bottlenecks may occur during periods of high market volatility, leading to user frustration.

Platforms must balance speedy withdrawals with security and compliance obligations; transparent communication about limits and processing times helps manage expectations.

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