what do you mean if you transfer out more than 3500 usd? You mean they ask for verification? When you say 3500 usd... u mean doing that in a single amount? If so, couldn't you just do 2k each if you want to go over that?
It's a limit of $3500. As in that's the maximum you can transfer out until you need to upload identification it's actually against the law for them to allow you to continue to use their service without identification for fraud reasons. They allow you to transfer a certain amount because it's not considered a business at that point.
What law? Is this based on New Zealand law (where they are located), or what? Lots of services allow users to deposit/withdraw cryptocurrency without limits because their legal interpretation is that cryptocurrency =/= money (subject to KYC/AML).
BitMEX, for example, has no KYC/AML for that reason, but they prohibited US customers because of how the US government interprets its AML/KYC and money transmission regulations.