That sort of limit is imposed by authorities, hence he simply cannot legally issue a non-KYC card with higher limits.
I've seen it before at Wirex; at some point they've offering such cards and the lifetime total amount for the card was this low; and they were asking for some not-so-nice fee to issue the card (plastic too, I think); and their overall fees added up made those cards not really appealing. Virtual-only should be cheaper from start and that's already a plus.