Vitalik cheers Ethereum community push back over harsh Canadian crypto rules

Co-Founder of Ethereum Vitalik Buterin Praised community members for speaking out against new Canadian rules restricting cryptocurrency purchases.

I am happy to see that the Ethereum people are against regulations that favor Ethereum over other legitimate cryptocurrencies.

(I haven’t delved into the details of what’s going on specifically, or the relationship between government issues and one company’s compliance decisions, but anyway…) https://t.co/NDYPh5rqsk

vitalik.eth (@VitalikButerin) August 17, 2022

Canadian exchanges Bitbuy and Newton impose an annual purchase limit of CAD 30,000 ($23,100) for all tokens except Bitcoin, Ethereum, Litecoin and Bitcoin Cash. However, this does not apply to residents of British Columbia, Alberta, Manitoba or Quebec.

Some social media users have pointed out that affected individuals can circumvent the rule by loading unlimited tokens, transferring them to a decentralized exchange, and swapping to tokens of their choice.

The move, mandated by the Ontario Securities Commission (OSO), has drawn criticism from several prominent crypto industry figures.

OSO wants to protect investors

based in toronto newton posted a notice announcing the details of the new OSO rules and[s] All Canadian Crypto Trading Platforms. “

The notice explains that the OSO will make changes to “protect cryptocurrency investors” and raise awareness of the risks associated with cryptocurrency investments.

These changes are to protect crypto investors like you and to ensure that investors are aware of the risks associated with investing in crypto assets.

In addition to the annual purchase limit, Newton says users must complete a trading survey before being allowed to trade. This is to collect information about your trading experience, personal financial situation and risk tolerance.

Portfolios have an assigned loss level based on the risk tolerance stated in the trading questionnaire. A loss notification will be sent when the user’s portfolio approaches the indicated loss level.

Buterin Praises Ethereum Community

Simon Dixon, CEO of investment platform BnkToTheFuture, called it “ridiculous” because the regulation does not take into account an individual’s net worth.

Furthermore, Dixon pointed out that rules that exclude certain tokens create a two-tier system, effectively picking winners and losers. This is contrary to the authority of regulators to supervise neutrally.

Best to use % of net worth instead of annual amount if you are doing something silly like Canada New regulatory changes for crypto in Canada.you can buy as much as you want #bitcoin / $ETH / $LTC / $BCH As you wish, but other cryptos have a limit of 30,000 net purchases per year. pic.twitter.com/IPrZq4k6S1

Simon Dixon (Beware of Impersonation) (@SimonDixonTwitt) August 18, 2022

Similarly David HoffmanThe CEO of crypto media outlet Bankless, said it makes little sense to severely limit investors’ allocation choices.

yo w

“You have purchased $20,000 of Solana (SOL), a restricted cryptocurrency. You have used $20,000 of your $30,000 annual limit. If you wish to purchase more cryptocurrencies, you can purchase up to $10,000.

what are you doing canadahttps://t.co/1sNK7w80pd https://t.co/Z5azEzCrPj

DavidHoffman.eth (@TrustlessState) August 17, 2022

Buterin said ETH is not affected by the new rules due to its privileged position, but it is encouraging that the Ethereum community is expressing its dissatisfaction.