Transaction Limit

Definition ∞ A transaction limit is a predefined maximum amount of money or assets that can be moved in a single transaction or over a specified period. These limits are imposed by financial institutions, payment processors, or blockchain protocols for various reasons. Common objectives include security against fraud, compliance with regulatory requirements, or managing network capacity. Exceeding a transaction limit typically results in the transaction being declined or flagged for review.
Context ∞ In the digital asset space, transaction limits are relevant for cryptocurrency exchanges, centralized finance (CeFi) platforms, and sometimes directly within blockchain protocols to manage network congestion. Exchanges impose daily withdrawal or trading limits for security and anti-money laundering (AML) compliance, especially for unverified accounts. The discussion often concerns the balance between user convenience and necessary security or regulatory adherence. Monitoring changes in transaction limits by major platforms offers insight into evolving security practices and regulatory pressures within the crypto sector.