I don't know why either, but the fact that they CAN is not a good thing.
Yes it's legal, but is it wise? Most of the time you will end up losing in the withdraw fees alone. Unless you're arbitraging a large amount, it might not even be worth it.
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Is it wise? Depending on the difference I would say yes, if you rise and repeat over hours its good money. Yeah, its something that would require alot to sit on exchanges.