As per regulations, Canadian crypto exchanges are introducing measures to limit the annual purchase limit for select crypto assets to 30,000 CAD ($23,250) per year, and this does not include (only) the four major coins.
While the cap will not affect the ability of Canadian crypto investors to invest in some of the major coins, it will likely reduce their purchases of a wider range of altcoins.
Canadian crypto exchange newton in a statement explaining the new limits to our users, who have been working “silently” on our registry “for the past few months”. Ontario Securities Commission, as well as in the securities regulator. Adding officials in other Canadian provinces and territories:
“You may already be familiar with these changes as they affect all Canadian crypto trading platforms, not just Newton.”
Depending on the client’s province of residence, the net purchase limit may be placed on their account.
Users will be able to see these limits in the Newton app when they go to place a trade. Limits exclude Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).,
Limits do not apply to users residing in British Columbia, Alberta, Manitoba or Quebec, depending on the Platform.
This means that the annual net purchase limit will be imposed on residents of the following Canadian provinces: New Brunswick, Newfoundland, Nova Scotia, Nunavut, Northwest Territories, Ontario, Prince Edward Island, Saskatchewan and Yukon.
Newton said the regulatory changes were developed with the aim of “protecting crypto investors”. […] and ensure that investors are aware of the risks associated with investing in crypto assets.”
Similarly, Canadian crypto exchange bitbay The limits announced at the beginning of the year, stating:
“The limits are defined as the “net purchase limit”, which means that you add up your sales (at average cost) minus all your cryptocurrency purchases over a period of 12 consecutive months (the last 365 days).
As in the case of Netwon, there is no limit for BTC, ETH, LTC and BCH, while “all other coins combined” are limited to 30,000 CAD in net purchases (total purchases (at purchase price) in total sales). 100,000 CAD for retail investors and for eligible investors in the last 12 months.
Nevertheless, the latest development has triggered many reactions in the cryptosphere.
Ethereum co-founder Vitalik Buterin said he is happy to see these rules being pushed back:
Simon Dixon, CEO and Founder BNKtothefuture.com, tweeted That if “you’re doing something dumb like Canada, you’re better off going with % net worth instead of annual totals.”
However, Kale Moody, President and CEO Neptune Digital Assets, plot The outrage against Newton’s announcement that “is an example of how Twitter users manipulate information to anger people. This is a brokerage law that means regulated brokers are allowed in some provinces to smuggle their client accounts.” Coins are not allowed to be loaded. It will not affect anyone in Canada,” Moody’s said.