You just haven't had the account with Paypal long enough. They don't know you very well and so are being careful. Unfortunately, this will take time for the limits to back off.
I used to sell on eBay and all the money went in and out of Paypal. For a while, they would limit the amount I could withdraw, in case buyers wanted to dispute their purchases. This way, Paypal wouldn't have to take the risk of paying the buyer back out of their own pocket. They could just take it out of mine (as would be fair - somewhat).
Anyway, each month or two, Paypal would make the limit less and less, until eventually, no more limits. It probably took 6 months to a year.
You can stop it by having a large positive balance....
(Derp)
Why dose Paypal limits my funds, and how can I stop this