Canadian Crypto Regulators Impose New Changes on Annual Altcoin Buying Limit to 30,000 CAD.
The Canadian Securities Administrators (CSA) have imposed new changes to the net buying limit of cryptocurrencies to protect investors from the risks associated with trading virtual assets.
Under the new regulatory changes, investors are allowed to purchase an unlimited amount of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), depending on the province. However, other cryptocurrencies are subjected to a new net buying limit of 30,000 Canadian dollars annually, approximately $24,000.
new regulatory changes in Canada for crypto
you are allowed to buy as much btc/eth/ltc/bch as you want but any other crypto has a limit of 30k net buy per year
bruh.. pic.twitter.com/Emqf75aCrN
— mo (@mochains) August 17, 2022
All registered crypto exchanges in the region are expected to comply with the changes, which are set to be amended after 12 months of usage.
Based on the new changes, Newton, one of Canada’s leading crypto trading companies, announced that its customers are subjected to the rule.
Per the announcement, the exchange noted that cryptocurrency investors residing in the following areas: New Brunswick, Newfoundland, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Northwest Territories, Yukon, and Saskatchewan are expected to comply with the annual net buy limit of 30K Canadian dollars.
However, BC, Alberta, Manitoba, and Quebec investors are exempt from the rule and can purchase four non-restricted virtual assets without limitations.
“These limits exclude the following coins: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. If you live in BC, Alberta, Manitoba, or Quebec.”
The changes are also designed to reset after 12 months and only impact digital assets purchased using the Canadian dollar.
Newton further explained that if an investor buys or sells a restricted token, the sale amount would be removed from the limit.
Furthermore, exchanges must gather information about users’ crypto investing experience and financial situation.
Per the announcement, the latest development came after the crypto exchange registered its business with the Ontario Securities Commission (OSC) and the securities regulatory authorities in other Canadian territories under the CSA Jurisdiction.
“These changes are to protect crypto investors, like yourself, and to make sure investors are aware of the risks associated with investing in crypto assets,” said the exchange.
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