One reason could be from Anti-Money regulations forcing financial institutions to file "Currency Transaction Reports" to The Financial Crimes Enforcement Network (FinCEN) for any transfer exceeding a certain threshold, which is usually $10k, but could be as low as $1k in some jurisdictions.
Meaning the fiat payments (banks, Wise, PayPal...) are required to verify and freeze "suspicious" transfers. Such limits protect unaware users somehow.
Add_5: If you want to churn Monero with a 3rd party, you can use https://monerodice.pro with multiplier set to 1, so it is guaranteed to send you back the same amount, but using different outputs.
Network fees are covered by the application.
One reason could be from Anti-Money regulations forcing financial institutions to file "Currency Transaction Reports" to The Financial Crimes Enforcement Network (FinCEN) for any transfer exceeding a certain threshold, which is usually $10k, but could be as low as $1k in some jurisdictions. Meaning the fiat payments (banks, Wise, PayPal...) are required to verify and freeze "suspicious" transfers. Such limits protect unaware users somehow.