And now I go to Cryptsy and notice a withdrawal limit of $25/$100 for non-KYC required products (digital coins).  Don't quite like this additional "update/upgrade".

Why limit withdrawals?  What's the basis for this?

EDIT:  What's more interesting... "tier 1" is in no way KYC compliance as it is only a "tell me who you are and I'll trust you" level.  KYC mandates for the US verification at any level (read no verification as a limit of 0, not $25/$100 or $2000/$10,000)

I'm really curious what the basis is for this new intrusion of privacy.  Show us who is requiring you to know who we are or else we're forced to conclude that you're just attempting to restrict and/or reduce withdrawals from your wallets.