On Canadian-based crypto platforms, restrictions were placed on the purchase of many cryptocurrencies. Even with the exception of four coins, users will have to consider a certain limit when purchasing SHIB, DOGE, ADA, SOL. Here are the details…
Restriction for many altcoins including SHIB in Canada
Under the new changes, Ontario-based crypto traders on Newton and other Canadian crypto platforms have a “net buy limit” of up to CAD 30,000 per year in all cryptocurrencies except Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC). sure will. Newton also explained that if a trader buys and sells an amount of coins in line with the limit, the selling amount will be deducted from the limit. The limit will reset every 12 months from the first purchase of restricted coins.
The purchase limits came after the crypto platform announced on Wednesday that it had officially registered as a “restricted seller” in the province of Ontario. This means they are now subject to regulations set by the Ontario Securities Commission (OSC). Other changes to consumer protection include a “trade survey” where the exchange should collect information from users about their past experience and knowledge of crypto investing, financial standing and risk tolerance.
The crypto exchange will also be able to send a notification to investors if the investor’s portfolio sees a level of loss that they are not comfortable with in the survey. Canadian crypto exchange Bitbuy also confirmed similar buy limits earlier in the year. He noted that similar restrictions apply to users in the states of Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Northwest Territories, Nunavut and Yukon.
Users will fill out surveys
Similar to Newton, Bitbuy will conduct a survey where traders can qualify as individual, eligible or advanced investors. However, individual investors will continue to be subject to the 30,000 CAD purchase limit, while the eligible investors’ purchase limit will be increased to 100,000 CAD. There is no purchase limit for accredited investors. Newton provided traders with a snapshot of what to expect to see when the new rules go into effect.
The province of Ontario alone accounts for about 40% of Canada’s population and Toronto is the main metropolitan center. Newton noted that each province and territory of Canada has its own securities regulatory authority, and they come together to form the Canadian Securities Administrators (CSA). Consumer protection is also not the only focus of Canadian regulators. In April 2021, the Canadian federal government announced that it would undergo a regulatory review of the financial sector, with a particular focus on improving the stability and security of digital currencies and creating a central bank digital currency (CBDC).
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