The rapid development of the crypto ecosystem is scaring regulators. As a result, many of them are looking for solutions to monitor the sector and protect consumers. In this momentum, Canada is imposing new rules for crypto investing that might not please everyone…
Canadian exchanges at work in the crypto sector
Cryptos have gained unparalleled notoriety in a few years. Going back a bit, only a few people were receptive to digital assets. But today, there are all generations. Faced with the growing development of this sector, the Canadian stock exchanges Newton and BitBuy have decided to impose a purchase limit.
The speed with which cryptos are gaining traction is pushing regulators to tighten strategies to keep them in check. As a result, purchases of cryptocurrencies are limited to 30,000 Canadian dollars per year. How it works ? Well, some tokens are “restricted”. So you use your limit every time you make a purchase.
For example, if you buy $15,000 of SOL, your purchase limit is $10,000. Therefore, if you wish to come into possession of other restricted coins with a value greater than this amount, you will have to part with other tokens. However, the limit put in place by the Ontario Securities Commission (OSC) is only valid for one year. The latter will therefore be reset the following year.
Bitcoin (BTC) and Ethereum (ETH) excluded from restriction
Fortunately for cryptocurrency enthusiasts, not all digital assets face this penalty. Indeed, some cryptos, including bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) have no limits. As a result, investors will be able to continue their operations quietly. However, this limit only applies to retail investors.
Also, unlike accredited investors who have no limit, the amount is higher for eligible investors. If these restrictions annoy investors, Newton has declared Wednesday that he had registered as a restricted seller in the province of Ontario. As such, he is obligated to abide by the rules established by the (OSC).
Canada is getting to work to protect crypto investors. Indeed, the Newton and BitBuy exchanges have decided to establish annual purchase limits on certain tokens. Traders will now have a financial profile allowing them to be assigned a category: eligible, accredited or retail investor.
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