Ontario crypto exchanges impose $30K CAD annual limit on altcoin buys

Canada-based cryptocurrency exchanges Bitbuy and Newton have announced that they will block users’ “restricted coins” based in Ontario to “protect consumers” amid heightened regulation. , enforces a CAD $30,000 annual purchase limit.

Toronto-based cryptocurrency exchange Newton announced The new changes come after working on registration with the Ontario Securities Commission and securities regulators in Canada’s other provinces and territories, the company said in Tuesday’s post.

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.

Under the new changes, Ontario-based crypto traders on Newton and other Canadian crypto platforms will be subject to a C$30,000 annual net purchase limit for all cryptocurrency coins except Bitcoin. increase (Bitcoin), Bitcoin Cash (BCHMore),ether(ethereum), and Litecoin (LTC).

Newton further clarified that if a trader buys a restricted coin and then sells it, the amount of the sale will be deducted from the limit. The limit resets every 12 months he from the first purchase of restricted coins.

The purchase limit means the cryptocurrency platform has become subject to regulations set by the Ontario Securities Commission (OSC) as it announced Wednesday that it has officially registered as a restricted dealer in Ontario. .

We are pleased to finally announce registration with the Ontario Securities Commission (OSC) and the securities regulators of all Canadian provinces, the Yukon Territory and the Northwest Territories. pic.twitter.com/8zx8UJy2DE

Newton (@newton_crypto) August 16, 2022

Other changes aimed at consumer protection include a trading survey that requires exchanges to gather information from users regarding their past cryptocurrency investment experience and knowledge, financial situation, and risk tolerance. will be This must be completed in order for the fundraising to continue. Transactions on your account and platform.

Crypto exchanges also send notifications to traders when their portfolios receive loss levels that they indicated in surveys as unsatisfactory.

Canadian cryptocurrency exchange Bitbuy Confirmed Please note that similar restrictions apply to users in Manitoba, New Brunswick, Newfoundland, Labrador, Nova Scotia, Prince Edward Island, Northwest Territories, Nunavut and Yukon.

Like Newton, Bitbuy requires traders to complete a survey to determine whether an investor qualifies as a retail, accredited, or sophisticated investor. However, while individual investors are subject to a purchase limit of CAD$30,000, the purchase limit for accredited investors has been increased to CAD$100,000 and there is no purchase limit for accredited investors.

Newton has given traders a snapshot of what to expect when the new rules take effect.

ONTARIO ONLY account With about 40% of Canada’s population, Toronto is a major metropolitan hub.

Newton said each Canadian province and territory has its own securities regulator, which together make up the Canadian Securities Administrators (CSA).

Related: Crypto Cleanup: How Much Enforcement Is Too Much?

Consumer protection is not the only focus of Canadian regulators. In April 2021, the Federal Government of Canada will: Financial sector legislative reviewespecially improving the stability and security of digital currencies and Central Bank Digital Currency (CBDC).

Billing itself as Canadas trusted low-cost cryptocurrency trading platform, Newton was founded in 2018 and is currently one of Canadas most popular exchanges. Beyond 100,000 users in February 2021.